Cymer (NASDAQ: CYMI) and Himax Technologies (NASDAQ:HIMX) are both semiconductors – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Insider & Institutional Ownership

22.3% of Himax Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cymer and Himax Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cymer 0 0 0 0 N/A
Himax Technologies 3 2 10 0 2.47

Himax Technologies has a consensus target price of $9.67, indicating a potential downside of 5.18%.

Dividends

Himax Technologies pays an annual dividend of $0.23 per share and has a dividend yield of 2.3%. Cymer does not pay a dividend. Himax Technologies pays out 383.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

Net Margins Return on Equity Return on Assets
Cymer N/A N/A N/A
Himax Technologies 1.25% 2.10% 1.24%

Earnings & Valuation

This table compares Cymer and Himax Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cymer N/A N/A N/A ($1.79) N/A
Himax Technologies $802.92 million 2.19 $50.91 million $0.06 170.03

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

Summary

Himax Technologies beats Cymer on 8 of the 9 factors compared between the two stocks.

About Cymer

Cymer, Inc. (Cymer) is a supplier of light sources used in the photolithography process for semiconductor, or chip manufacturing. The Company provides light sources designed to help enable the performance of wafer steppers and wafer scanners built by lithography tool manufacturers. The Company operates in two segments: light source products and display products. It provides installed base products in support of its chipmaker customers, who use its light sources in their advanced wafer patterning production processes. The Company’s TCZ segment develops, integrates, markets and supports silicon crystallization tools used in the manufacture of different types of displays, including low temperature poly-silicon liquid crystal displays (LTPS РLCD) and organic light emitting diode (OLED) displays. In May 2013, Cymer Inc completed the previously announced merger pursuant to which ASML Holding NV acquired Cymer.

About Himax Technologies

Himax Technologies, Inc. is a fabless semiconductor solution provider. The Company is engaged in display driver integrated circuits (IC) and timing controllers used in televisions, laptops, monitors, mobile phones, tablets, digital cameras, car navigation and other consumer electronics devices. The Company operates through two segments: Driver IC and Non-driver products. In addition, the Company designs and provides controllers for touch sensor displays, liquid crystal on silicon micro-displays used in palm-size projectors and head-mounted displays, light-emitting diode driver ICs, power management ICs, scaler products for monitors and projectors, video processing IC solutions and silicon IPs. It also offers digital camera solutions, including complementary metal-oxide-semiconductor image sensors and wafer level optics, which are used in a range of applications, such as mobile phone, tablet, laptop, televisions, personal computer camera, automobile, security and medical devices.

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