Reviewing PMC-Sierra (PMCS) and Magnachip Semiconductor (MX)

PMC-Sierra (NASDAQ: PMCS) and Magnachip Semiconductor (NYSE:MX) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PMC-Sierra and Magnachip Semiconductor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PMC-Sierra 0 0 0 0 N/A
Magnachip Semiconductor 0 1 1 0 2.50

Magnachip Semiconductor has a consensus target price of $13.00, suggesting a potential upside of 15.56%.

Insider & Institutional Ownership

89.5% of Magnachip Semiconductor shares are held by institutional investors. 3.8% of Magnachip Semiconductor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares PMC-Sierra and Magnachip Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PMC-Sierra 5.03% 4.71% 3.27%
Magnachip Semiconductor -1.24% N/A -6.37%

Earnings & Valuation

This table compares PMC-Sierra and Magnachip Semiconductor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PMC-Sierra N/A N/A N/A $0.02 N/A
Magnachip Semiconductor $687.97 million 0.56 -$29.61 million ($0.46) -24.46

PMC-Sierra has higher earnings, but lower revenue than Magnachip Semiconductor. Magnachip Semiconductor is trading at a lower price-to-earnings ratio than PMC-Sierra, indicating that it is currently the more affordable of the two stocks.

About PMC-Sierra

PMC-Sierra, Inc. (PMC) is a semiconductor and software solution innovator transforming networks that connect, move, and store Big Data. The Company designs, develops, markets and supports semiconductor, embedded software, and board level solutions. The Company has approximately 700 different semiconductor devices that are sold to equipment and design manufacturers, who in turn supply their equipment principally to enterprises, Cloud Data Centers and carriers worldwide. The Company provides solutions for its customers across a range of applications and industry protocols. PMC’s portfolio of semiconductor devices is used in various applications of storage and communications network infrastructure equipment and enable the transporting and storing of digital data in a secure manner. The Company’s semiconductor devices enable networking equipment primarily in three market segments: Storage, Optical and Mobile networks.

About Magnachip Semiconductor

MagnaChip Semiconductor Corporation is a designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (IoT) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory and Radio Frequency (RF) applications. The Company has two segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides analog and mixed-signal foundry services to semiconductor companies and Integrated Device Manufacturers (IDMs) that serve consumer, computing, communication, industrial, automotive and IoT applications. The Company manufactures wafers-based on its customers’ product designs. The Company’s Standard Products Group includes its Display Solutions and Power Solutions business lines.

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