Magnachip Semiconductor (NYSE:MX) and TranSwitch (OTCMKTS:TXCCQ) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
This table compares Magnachip Semiconductor and TranSwitch’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Magnachip Semiconductor has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, TranSwitch has a beta of -0.98, meaning that its stock price is 198% less volatile than the S&P 500.
Insider & Institutional Ownership
89.3% of Magnachip Semiconductor shares are held by institutional investors. 5.4% of Magnachip Semiconductor shares are held by company insiders. Comparatively, 6.3% of TranSwitch shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for Magnachip Semiconductor and TranSwitch, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Magnachip Semiconductor currently has a consensus price target of $10.80, suggesting a potential upside of 29.19%. Given Magnachip Semiconductor’s higher probable upside, research analysts plainly believe Magnachip Semiconductor is more favorable than TranSwitch.
Earnings & Valuation
This table compares Magnachip Semiconductor and TranSwitch’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Magnachip Semiconductor||$750.90 million||0.38||-$3.90 million||$0.71||11.77|
TranSwitch has lower revenue, but higher earnings than Magnachip Semiconductor.
Magnachip Semiconductor beats TranSwitch on 6 of the 9 factors compared between the two stocks.
About Magnachip Semiconductor
MagnaChip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and sells analog and mixed-signal semiconductor platform solutions for communications, Internet of Things, consumer, industrial, and automotive applications. The company operates through two segments, Foundry Services Group and Standard Products Group. The Foundry Services Group segment provides analog and mixed-signal foundry services for fabless and integrated device manufacturer semiconductor companies to manufacture a range of products, including display drivers, light emitting diode (LED) drivers, audio encoding and decoding devices, microcontrollers, touch screen controllers, RF switches, park distance control sensors for automotive, electronic tag memories, and power management semiconductors. The Standard Products Group segment offers display solutions, including source and gate drivers, and timing controllers that cover a range of flat panel displays used in ultra-high definition, high definition, full high definition, LED, 3D and organic light emitting diodes televisions and displays, notebooks, and mobile communications and entertainment devices. This segment also offers power management semiconductor products, such as metal oxide semiconductor field effect transistors, insulated gate bipolar transistors, converters, LED drivers, SSD PMIC products, and switching and linear regulators for televisions, smartphones, mobile phones, desktop PCs, notebooks, tablet PCs, other consumer electronics, and consumer appliances, as well as for industrial applications. It serves consumer, computing, and industrial electronics original equipment manufacturers; original design manufacturers; and electronics manufacturing services companies, as well as subsystem designers. The company sells its products through a direct sales force, as well as through a network of agents and distributors worldwide. MagnaChip Semiconductor Corporation is based in Luxembourg City, Luxembourg.
TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.
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