Comparing NeoMagic (OTCMKTS:NMGC) & SemiLEDS (NASDAQ:LEDS)

NeoMagic (OTCMKTS:NMGC) and SemiLEDS (NASDAQ:LEDS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares NeoMagic and SemiLEDS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoMagic	N/A	N/A	N/A
SemiLEDS	-2.99%	-42.61%	-6.96%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NeoMagic and SemiLEDS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoMagic	0	0	0	0	0.00
SemiLEDS	1	0	0	0	1.00

Volatility & Risk

NeoMagic has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, SemiLEDS has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Insider & Institutional Ownership

76.3% of SemiLEDS shares are held by institutional investors. 12.7% of NeoMagic shares are held by insiders. Comparatively, 57.4% of SemiLEDS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NeoMagic and SemiLEDS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoMagic	N/A	N/A	N/A	N/A	N/A
SemiLEDS	$43.01 million	0.31	-$1.13 million	($0.16)	-10.25

NeoMagic has higher earnings, but lower revenue than SemiLEDS.

Summary

SemiLEDS beats NeoMagic on 5 of the 8 factors compared between the two stocks.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.

About SemiLEDS

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.