Head-To-Head Analysis: Magnachip Semiconductor (NYSE:MX) & FTC Solar (NASDAQ:FTCI)

Magnachip Semiconductor (NYSE:MXGet Rating) and FTC Solar (NASDAQ:FTCIGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Magnachip Semiconductor and FTC Solar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magnachip Semiconductor 16.19% 10.61% 8.20%
FTC Solar -51.28% -54.97% -35.87%

Insider & Institutional Ownership

70.9% of Magnachip Semiconductor shares are held by institutional investors. Comparatively, 20.4% of FTC Solar shares are held by institutional investors. 4.1% of Magnachip Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Magnachip Semiconductor has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, FTC Solar has a beta of 3.59, suggesting that its stock price is 259% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Magnachip Semiconductor and FTC Solar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magnachip Semiconductor 0 0 2 0 3.00
FTC Solar 2 0 5 1 2.63

Magnachip Semiconductor currently has a consensus price target of $25.00, suggesting a potential upside of 25.82%. FTC Solar has a consensus price target of $7.00, suggesting a potential upside of 33.84%. Given FTC Solar’s higher possible upside, analysts clearly believe FTC Solar is more favorable than Magnachip Semiconductor.

Valuation & Earnings

This table compares Magnachip Semiconductor and FTC Solar’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magnachip Semiconductor $474.23 million 1.88 $56.71 million $1.55 12.82
FTC Solar $270.52 million 1.93 -$106.59 million ($1.47) -3.56

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

Summary

Magnachip Semiconductor beats FTC Solar on 9 of the 14 factors compared between the two stocks.

Magnachip Semiconductor Company Profile (Get Rating)

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, 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, notebook PCs, monitors and liquid crystal displays, and micro light-emitting diode (LED) televisions. 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-bike, photovoltaic inverter, LED lighting, motor drive, and home appliances; and organic light-emitting diode display driver integrated circuits for OLED TVs. It serves consumer, computing, and industrial electronics original equipment manufacturers, original design manufacturers, and electronics manufacturing services companies, as well as subsystem designers in Korea, the Asia Pacific, the United States, Europe, and internationally. 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 2004 and is based in Luxembourg, Luxembourg.

FTC Solar Company Profile (Get Rating)

FTC Solar, Inc. provides solar tracker systems, technology, software, and engineering services in the United States, Vietnam, and internationally. It offers two-panel in-portrait single-axis tracker solutions under the Voyager brand name. The company also provides SunPath, a software solution to enhance energy production; Atlas, a web-based enterprise-level database that allows users to manage their project portfolio; and SunDAT, a software solution enables automated design and optimization of solar panel systems across residential, commercial, and utility-scale sites. Its customers include project developers; solar asset owners; and engineering, procurement, and construction contractors that design and build solar energy projects. FTC Solar, Inc. was incorporated in 2017 and is headquartered in Austin, Texas.

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