Critical Review: Himax Technologies (NASDAQ:HIMX) and Silvaco Group (NASDAQ:SVCO)

Himax Technologies (NASDAQ:HIMX) and Silvaco Group (NASDAQ:SVCO) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Himax Technologies and Silvaco Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himax Technologies	0	3	0	0	2.00
Silvaco Group	1	0	3	1	2.80

Himax Technologies currently has a consensus target price of $8.00, indicating a potential downside of 30.80%. Silvaco Group has a consensus target price of $9.33, indicating a potential downside of 19.47%. Given Silvaco Group’s stronger consensus rating and higher possible upside, analysts plainly believe Silvaco Group is more favorable than Himax Technologies.

Institutional & Insider Ownership

69.8% of Himax Technologies shares are held by institutional investors. 31.5% of Himax Technologies shares are held by insiders. Comparatively, 47.9% of Silvaco Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Himax Technologies has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

This table compares Himax Technologies and Silvaco Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himax Technologies	$832.17 million	2.42	$43.94 million	$0.26	44.46
Silvaco Group	$63.06 million	5.78	-$41.21 million	($1.41)	-8.22

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

Profitability

This table compares Himax Technologies and Silvaco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Himax Technologies	5.28%	4.92%	2.59%
Silvaco Group	-65.34%	-23.01%	-14.07%

Summary

Himax Technologies beats Silvaco Group on 9 of the 15 factors compared between the two stocks.

About Himax Technologies

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States. The company operates in two segments, Driver IC and Non-Driver Products. It offers display driver integrated circuits (ICs) and timing controllers that are used in televisions, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, and other products. The company also provides automotive IC solutions, including traditional driver ICs; advanced in-cell touch and display driver integration; large touch and display driver integration; and local dimming timing controllers, as well as active matrix organic light-emitting diode (AMOLED) solutions, including AMOLED drivers, timing controllers, and touch controller ICs. In addition, it offers application specific IC services; liquid crystal on silicon and micro-electro mechanical system products; Power ICs; complementary metal oxide semiconductor image sensor products; wafer level optics products; 3D sensing products; and ultralow power WiseEye smart image sensing products. The company markets its display drivers to panel manufacturers, mobile device module manufacturers, and manufacturers of end-use products. Himax Technologies, Inc. was incorporated in 2001 and is headquartered in Tainan City, Taiwan.

About Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.