Reviewing Himax Technologies (NASDAQ:HIMX) & Aeluma (NASDAQ:ALMU)

Aeluma (NASDAQ:ALMU) and Himax Technologies (NASDAQ:HIMX) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Aeluma and Himax Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeluma	1	0	2	1	2.75
Himax Technologies	0	3	0	0	2.00

Aeluma presently has a consensus price target of $25.00, indicating a potential upside of 93.20%. Himax Technologies has a consensus price target of $8.00, indicating a potential downside of 41.52%. Given Aeluma’s stronger consensus rating and higher possible upside, research analysts clearly believe Aeluma is more favorable than Himax Technologies.

Volatility and Risk

Aeluma has a beta of 4.07, indicating that its stock price is 307% more volatile than the S&P 500. Comparatively, Himax Technologies has a beta of 2.34, indicating that its stock price is 134% more volatile than the S&P 500.

Profitability

This table compares Aeluma and Himax Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aeluma	-115.57%	-12.03%	-11.42%
Himax Technologies	4.26%	3.90%	2.04%

Valuation & Earnings

This table compares Aeluma and Himax Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeluma	$4.66 million	50.84	-$3.02 million	($0.35)	-36.97
Himax Technologies	$828.63 million	2.88	$43.94 million	$0.21	65.14

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

Institutional & Insider Ownership

69.8% of Himax Technologies shares are owned by institutional investors. 14.7% of Aeluma shares are owned by insiders. Comparatively, 31.5% of Himax Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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

About Aeluma

Aeluma, Inc. develops optoelectronic and electronic devices in the United States. The company manufactures semiconductor materials and chips using compound semiconductors on diameter substrates that are used to manufacture mass market microelectronics. It offers its devices for use in mobile, automotive, AI, defence and aerospace, communication, AR/VR, and HPC applications, as well as laser emitters, transistors for integrated circuits, quantum photonic circuits, and solar cells applications. Aeluma, Inc. was formerly known as Parc Investments, Inc. and changed its name to Aeluma, Inc. June 2021. The company was founded in 2019 and is headquartered in Goleta, California.

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.