Magnachip Semiconductor (MX) versus Its Competitors Critical Survey

Magnachip Semiconductor (NYSE:MX) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare Magnachip Semiconductor to similar companies based on the strength of its analyst recommendations, profitability, dividends, risk, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Magnachip Semiconductor and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magnachip Semiconductor	$178.86 million	-$29.72 million	-2.86
Magnachip Semiconductor Competitors	$8.08 billion	$2.48 billion	24.41

Magnachip Semiconductor’s peers have higher revenue and earnings than Magnachip Semiconductor. Magnachip Semiconductor is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Magnachip Semiconductor and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnachip Semiconductor	-17.26%	-5.84%	-4.10%
Magnachip Semiconductor Competitors	-1,280.57%	-126.39%	-4.01%

Volatility & Risk

Magnachip Semiconductor has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Magnachip Semiconductor’s peers have a beta of 3.09, meaning that their average stock price is 209% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Magnachip Semiconductor and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnachip Semiconductor	1	1	0	0	1.50
Magnachip Semiconductor Competitors	3481	12278	25647	986	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 39.61%. Given Magnachip Semiconductor’s peers stronger consensus rating and higher probable upside, analysts clearly believe Magnachip Semiconductor has less favorable growth aspects than its peers.

Insider & Institutional Ownership

74.3% of Magnachip Semiconductor shares are held by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 10.9% of Magnachip Semiconductor shares are held by company insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Magnachip Semiconductor peers beat Magnachip Semiconductor on 10 of the 13 factors compared.

Magnachip Semiconductor Company Profile

Magnachip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, the Internet of Things, consumer, computing, industrial, and automotive applications. It provides display solutions, including source and gate drivers, and timing controllers that cover a range of flat panel displays used in mobile communications, automotive, entertainment devices, monitors, notebook PCs, tablet PC and TVs applied with liquid crystal display, organic light emitting diodes (OLED), and micro light emitting diode (Micro LED) panel. The company also offers metal oxide semiconductor field-effect transistors, insulated-gate bipolar transistors, AC-DC converters, DC-DC converters, LED drivers, regulators, and power management integrated circuits for a range of devices comprising televisions, smartphones, mobile phones, wearable devices, desktop PCs, notebooks, tablet PCs, and other consumer electronics, as well as for power suppliers, e-bikes, photovoltaic inverters, LED lighting, and motor drives; and OLED display driver integrated circuit products. It serves consumer, computing, communication, automotive and industrial electronics OEMs, original design manufacturers, and electronics manufacturing services companies, as well as subsystem designers in the Asia Pacific, the United States, and Europe. The company sells its products through a direct sales force, as well as through a network of agents and distributors. Magnachip Semiconductor Corporation was incorporated in 2003 and is based in Cheongju-si, South Korea.