NXP Semiconductors (NASDAQ:NXPI – Get Free Report) and WISeKey International (NASDAQ:WKEY – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Volatility and Risk
NXP Semiconductors has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, WISeKey International has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.
Profitability
This table compares NXP Semiconductors and WISeKey International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NXP Semiconductors | 22.56% | 27.83% | 11.07% |
| WISeKey International | N/A | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NXP Semiconductors | 1 | 9 | 16 | 0 | 2.58 |
| WISeKey International | 1 | 0 | 2 | 0 | 2.33 |
NXP Semiconductors currently has a consensus price target of $305.43, indicating a potential upside of 36.61%. WISeKey International has a consensus price target of $10.50, indicating a potential upside of 63.30%. Given WISeKey International’s higher probable upside, analysts plainly believe WISeKey International is more favorable than NXP Semiconductors.
Institutional and Insider Ownership
90.5% of NXP Semiconductors shares are held by institutional investors. Comparatively, 0.3% of WISeKey International shares are held by institutional investors. 0.1% of NXP Semiconductors shares are held by insiders. Comparatively, 33.5% of WISeKey International 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 NXP Semiconductors and WISeKey International”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NXP Semiconductors | $12.27 billion | 4.60 | $2.02 billion | $11.72 | 19.08 |
| WISeKey International | $19.29 million | 2.78 | -$6.07 million | N/A | N/A |
NXP Semiconductors has higher revenue and earnings than WISeKey International.
Summary
NXP Semiconductors beats WISeKey International on 10 of the 12 factors compared between the two stocks.
About NXP Semiconductors
NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.
About WISeKey International
WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.
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