MaxLinear (NYSE:MXL) and Himax Technologies (NASDAQ:HIMX) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Risk and Volatility

MaxLinear has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Himax Technologies has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for MaxLinear and Himax Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MaxLinear 0 6 0 0 2.00
Himax Technologies 0 5 2 0 2.29

MaxLinear currently has a consensus target price of $20.80, suggesting a potential downside of 4.81%. Himax Technologies has a consensus target price of $5.57, suggesting a potential upside of 68.32%. Given Himax Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Himax Technologies is more favorable than MaxLinear.

Valuation and Earnings

This table compares MaxLinear and Himax Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MaxLinear $385.00 million 4.01 -$26.19 million $0.78 28.01
Himax Technologies $723.60 million 0.79 $8.57 million $0.06 55.17

Himax Technologies has higher revenue and earnings than MaxLinear. MaxLinear is trading at a lower price-to-earnings ratio than Himax Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

Himax Technologies pays an annual dividend of $0.09 per share and has a dividend yield of 2.7%. MaxLinear does not pay a dividend. Himax Technologies pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

91.7% of MaxLinear shares are owned by institutional investors. Comparatively, 9.5% of Himax Technologies shares are owned by institutional investors. 10.0% of MaxLinear shares are owned by company insiders. Comparatively, 31.5% of Himax Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares MaxLinear and Himax Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MaxLinear -9.17% 8.68% 4.59%
Himax Technologies 1.25% 2.36% 1.27%

Summary

Himax Technologies beats MaxLinear on 9 of the 16 factors compared between the two stocks.

MaxLinear Company Profile

MaxLinear, Inc. provides radio-frequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. The company offers range of semiconductor products, such as RF receivers and RF receiver SoCs, wireless infrastructure backhaul RF receivers and modem SoCs, laser modulator drivers, transimpedance amplifiers, clock and data recovery circuits, interface solutions, power management products, and data encryption and compression products. It also provides range of electronic devices, including cable DOCSIS broadband modems and gateways; wireline connectivity devices for in-home networking applications; RF transceivers and modems; fiber-optic modules; video set-top boxes and gateways; hybrid analog and digital televisions, and direct broadcast satellite outdoor and indoor units; and power management and interface products. It sells its products to electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through direct sales force, third party sales representatives, and a network of distributors. MaxLinear, Inc. was founded in 2003 and is headquartered in Carlsbad, California.

Himax Technologies Company Profile

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies worldwide. The company operates in two segments, Driver IC and Non-Driver Products. It offers display driver integrated circuits (ICs) and timing controllers used in televisions (TVs), laptops, monitors, mobile phones, tablets, digital cameras, car navigation, and other consumer electronics devices. The company also designs and provides controllers for touch sensor displays; in-cell touch and display driver integration single-chip solutions; LED driver and power management ICs; scaler products for monitors and projectors; tailor-made video processing IC solutions; silicon IPs; and liquid crystal on silicon micro-displays for augmented reality (AR) devices and head-up displays for automotive industry. In addition, it offers digital camera solutions, including complementary metal oxide semiconductor image sensors and wafer level optics for AR devices, 3D sensing, and machine vision, which are used in various applications, such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, medical devices, and Internet on Things. The company markets its display drivers and display-related products to panel manufacturers, agents or distributors, module manufacturers, and assembly houses; and non-driver products to camera module manufacturers, optical engine manufacturers, and television system manufacturers. Himax Technologies, Inc. has a collaboration with Kneron to develop and commercialize a 3D sensing and AI-enabled security and surveillance solution. The company was founded in 2001 and is headquartered in Tainan City, Taiwan.

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