Critical Contrast: Tessera Holding Corporation (NASDAQ:XPER) vs. Chipmos Technologies (IMOS)
Tessera Holding Corporation (NASDAQ: XPER) and Chipmos Technologies (NASDAQ:IMOS) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitabiliy, analyst recommendations and risk.
Tessera Holding Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Chipmos Technologies pays an annual dividend of $1.49 per share and has a dividend yield of 7.9%. Tessera Holding Corporation pays out -111.1% of its earnings in the form of a dividend. Chipmos Technologies pays out 65.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional and Insider Ownership
99.6% of Tessera Holding Corporation shares are held by institutional investors. Comparatively, 23.2% of Chipmos Technologies shares are held by institutional investors. 2.4% of Tessera Holding Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Tessera Holding Corporation and Chipmos Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tessera Holding Corporation||N/A||N/A||N/A||($0.72)||-37.64|
|Chipmos Technologies||$607.55 million||26.75||$185.29 million||$2.29||8.28|
Chipmos Technologies has higher revenue and earnings than Tessera Holding Corporation. Tessera Holding Corporation is trading at a lower price-to-earnings ratio than Chipmos Technologies, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Tessera Holding Corporation has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Chipmos Technologies has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
This table compares Tessera Holding Corporation and Chipmos Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tessera Holding Corporation||-12.22%||11.06%||5.46%|
This is a summary of recent ratings and recommmendations for Tessera Holding Corporation and Chipmos Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tessera Holding Corporation||0||0||1||0||3.00|
Tessera Holding Corporation presently has a consensus price target of $53.00, indicating a potential upside of 95.57%. Chipmos Technologies has a consensus price target of $22.00, indicating a potential upside of 15.97%. Given Tessera Holding Corporation’s higher possible upside, analysts plainly believe Tessera Holding Corporation is more favorable than Chipmos Technologies.
Tessera Holding Corporation beats Chipmos Technologies on 8 of the 12 factors compared between the two stocks.
About Tessera Holding Corporation
Tessera Holding Corporation is a product and technology licensing company. The Company’s technologies and intellectual property are deployed, in areas, such as audio, computational imaging, computer vision, mobile computing and communications, memory, data storage, three dimensional (3D) semiconductor interconnect and packaging. The Company delivers smart sight and sound solutions, and 3D semiconductor interconnect solutions for mobile devices, consumer electronics, and automotive markets. The Company also addresses technologies, such as Internet of Things (IoT) and augmented reality/virtual reality (AR/VR). It offers audio solutions for mobile devices, home theater systems and cinema. The Company’s subsidiaries include Tessera Technologies, Inc., DTS, Inc., Invensas Corporation and FotoNation.
About Chipmos Technologies
ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.
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