Reviewing Himax (HIMX) and Micron Technology (MU)

Himax (NASDAQ: HIMX) and Micron Technology (NASDAQ:MU) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Earnings and Valuation

How to Become a New Pot Stock Millionaire

This table compares Himax and Micron Technology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Himax $685.17 million 1.80 $27.96 million $0.16 44.88
Micron Technology $20.32 billion 3.08 $5.09 billion $4.41 12.25

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

Analyst Ratings

This is a breakdown of recent ratings for Himax and Micron Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Himax 3 5 6 0 2.21
Micron Technology 2 4 23 1 2.77

Himax currently has a consensus target price of $10.43, indicating a potential upside of 45.31%. Micron Technology has a consensus target price of $63.79, indicating a potential upside of 18.10%. Given Himax’s higher possible upside, research analysts clearly believe Himax is more favorable than Micron Technology.

Dividends

Himax pays an annual dividend of $0.23 per share and has a dividend yield of 3.2%. Micron Technology does not pay a dividend. Himax pays out 143.8% 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 Himax and Micron Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Himax 4.08% 6.41% 3.76%
Micron Technology 38.68% 48.27% 28.38%

Risk and Volatility

Himax has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Institutional & Insider Ownership

33.2% of Himax shares are held by institutional investors. Comparatively, 82.3% of Micron Technology shares are held by institutional investors. 0.5% of Micron Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Micron Technology beats Himax on 14 of the 17 factors compared between the two stocks.

About Himax

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. It offers display driver integrated circuits (ICs) and timing controllers used in televisions (TVs), laptops, monitors, mobile phones, tablets, digital cameras, car navigation, and other consumer electronics devices. The company also 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, tailor-made video processing IC solutions, and silicon IPs. In addition, it offers digital camera solutions, including complementary metal oxide semiconductor image sensors and wafer level optics, which are used in various applications, such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, and medical devices. The company markets its products to panel manufacturers, agents or distributors, module manufacturers, and assembly houses; and camera module manufacturers, optical engine manufacturers, and television system manufacturers. Himax Technologies, Inc. was founded in 2001 and headquartered in Tainan City, Taiwan.

About Micron Technology

Micron Technology, Inc. provides semiconductor systems worldwide. The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. It offers DDR3 and DDR4 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; lower power DRAM products for smartphones, tablets, automotive, laptop computers, and other mobile consumer device applications; DDR2 DRAM and DDR DRAM, GDDR5 and GDDR5X DRAM, SDRAM, and RLDRAM products for networking devices, servers, consumer electronics, communications equipment, computer peripherals, and automotive and industrial applications, as well as for computer memory upgrades; and hybrid memory cube semiconductor memory devices. The company also provides NAND products, which are electrically re-writeable, non-volatile semiconductor memory, and storage devices; client solid-state drives (SSDs) for notebooks, desktops, workstations, and other consumer applications; enterprise SSDs for server and storage applications; cloud SSDs; and multi-chip package and managed NAND products. In addition, it manufactures products that are sold under other brand names; and resells flash memory products that are purchased from other NAND Flash suppliers. Further, the company provides 3D XPoint non-volatile memory products; and NOR Flash, which are electrically re-writeable and semiconductor memory devices for automotive, industrial, connected home, and consumer applications. It markets its products to original equipment manufacturers and retailers through its internal sales force, independent sales representatives, and distributors; and through a Web-based customer direct sales channel, and channel and distribution partners. The company was founded in 1978 and is headquartered in Boise, Idaho.

Receive News & Ratings for Himax Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Himax and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply