Comparing Himax (HIMX) & Applied Materials (AMAT)

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

Earnings and Valuation

This table compares Himax and Applied Materials’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Himax $685.17 million 1.87 $27.96 million $0.16 46.63
Applied Materials $14.54 billion 3.20 $3.43 billion $3.25 14.21

Applied Materials has higher revenue and earnings than Himax. Applied Materials 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 summary of current ratings and recommmendations for Himax and Applied Materials, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Himax 3 5 6 0 2.21
Applied Materials 0 4 18 1 2.87

Himax presently has a consensus price target of $10.43, indicating a potential upside of 39.86%. Applied Materials has a consensus price target of $64.43, indicating a potential upside of 39.50%. Given Himax’s higher possible upside, equities research analysts clearly believe Himax is more favorable than Applied Materials.

Risk and Volatility

Himax has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Dividends

Himax pays an annual dividend of $0.23 per share and has a dividend yield of 3.1%. Applied Materials pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. 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. Applied Materials pays out 24.6% of its earnings in the form of a dividend.

Profitability

This table compares Himax and Applied Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Himax 3.43% 5.53% 3.16%
Applied Materials 19.24% 51.65% 22.65%

Institutional & Insider Ownership

24.0% of Himax shares are held by institutional investors. Comparatively, 78.7% of Applied Materials shares are held by institutional investors. 31.5% of Himax shares are held by insiders. Comparatively, 0.4% of Applied Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Applied Materials beats Himax on 13 of the 17 factors compared between the two stocks.

About Himax

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies worldwide. The company operates in two segments, Driver IC and Non-Driver Products. 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; in-cell touch and display driver integration single-chip solutions; LED driver and power management ICs; scaler products for monitors and projectors; tailor-made video processing IC solutions; silicon IPs; and liquid crystal on silicon micro-displays for augmented reality (AR) devices and head-up displays for automotive industry. In addition, it offers digital camera solutions, including complementary metal oxide semiconductor image sensors and wafer level optics for AR devices, 3D sensing, and machine vision, which are used in various applications, such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, medical devices, and Internet on Things. The company markets its display drivers and display-related products to panel manufacturers, agents or distributors, module manufacturers, and assembly houses; and non-driver products to camera module manufacturers, optical engine manufacturers, and television system manufacturers. Himax Technologies, Inc. was founded in 2001 and is headquartered in Tainan City, Taiwan.

About Applied Materials

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries worldwide. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits. It offers products and technologies for transistor and interconnect fabrication, including epitaxy, ion implantation, oxidation and nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes, and other display technologies for TVs, personal computers, electronic tablets, smart phones, and other consumer-oriented devices, as well as equipment for flexible substrates. The company serves manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode displays, and other electronic devices. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.

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