First Solar (NASDAQ:FSLR) and Magnachip Semiconductor (NYSE:MX) Financial Comparison

First Solar (NASDAQ:FSLR) and Magnachip Semiconductor (NYSE:MX) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for First Solar and Magnachip Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	2	12	22	1	2.59
Magnachip Semiconductor	1	1	0	0	1.50

First Solar currently has a consensus price target of $266.06, indicating a potential upside of 39.25%. Given First Solar’s stronger consensus rating and higher probable upside, equities analysts clearly believe First Solar is more favorable than Magnachip Semiconductor.

Insider and Institutional Ownership

92.1% of First Solar shares are held by institutional investors. Comparatively, 74.3% of Magnachip Semiconductor shares are held by institutional investors. 0.4% of First Solar shares are held by company insiders. Comparatively, 10.9% of Magnachip Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares First Solar and Magnachip Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Solar	32.47%	18.02%	13.05%
Magnachip Semiconductor	-17.26%	-5.84%	-4.10%

Risk & Volatility

First Solar has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Magnachip Semiconductor has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Valuation & Earnings

This table compares First Solar and Magnachip Semiconductor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$5.22 billion	3.93	$1.53 billion	$16.22	11.78
Magnachip Semiconductor	$178.86 million	0.57	-$29.72 million	($0.84)	-3.30

First Solar has higher revenue and earnings than Magnachip Semiconductor. Magnachip Semiconductor is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.

Summary

First Solar beats Magnachip Semiconductor on 14 of the 15 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

About Magnachip Semiconductor

Magnachip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, the Internet of Things, consumer, computing, industrial, and automotive applications. It provides display solutions, including source and gate drivers, and timing controllers that cover a range of flat panel displays used in mobile communications, automotive, entertainment devices, monitors, notebook PCs, tablet PC and TVs applied with liquid crystal display, organic light emitting diodes (OLED), and micro light emitting diode (Micro LED) panel. The company also offers metal oxide semiconductor field-effect transistors, insulated-gate bipolar transistors, AC-DC converters, DC-DC converters, LED drivers, regulators, and power management integrated circuits for a range of devices comprising televisions, smartphones, mobile phones, wearable devices, desktop PCs, notebooks, tablet PCs, and other consumer electronics, as well as for power suppliers, e-bikes, photovoltaic inverters, LED lighting, and motor drives; and OLED display driver integrated circuit products. It serves consumer, computing, communication, automotive and industrial electronics OEMs, original design manufacturers, and electronics manufacturing services companies, as well as subsystem designers in the Asia Pacific, the United States, and Europe. The company sells its products through a direct sales force, as well as through a network of agents and distributors. Magnachip Semiconductor Corporation was incorporated in 2003 and is based in Cheongju-si, South Korea.