Magnachip Semiconductor (NYSE:MX – Get Free Report) and Cohu (NASDAQ:COHU – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Analyst Recommendations
This is a summary of current recommendations and price targets for Magnachip Semiconductor and Cohu, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnachip Semiconductor | 1 | 1 | 0 | 0 | 1.50 |
| Cohu | 1 | 1 | 7 | 1 | 2.80 |
Cohu has a consensus price target of $68.75, indicating a potential upside of 34.65%. Given Cohu’s stronger consensus rating and higher probable upside, analysts plainly believe Cohu is more favorable than Magnachip Semiconductor.
Volatility & Risk
Profitability
This table compares Magnachip Semiconductor and Cohu’s 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% |
| Cohu | -7.43% | -1.96% | -1.30% |
Earnings & Valuation
This table compares Magnachip Semiconductor and Cohu”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnachip Semiconductor | $178.86 million | 0.57 | -$29.72 million | ($0.84) | -3.30 |
| Cohu | $452.96 million | 5.34 | -$74.27 million | ($0.83) | -61.52 |
Magnachip Semiconductor has higher earnings, but lower revenue than Cohu. Cohu is trading at a lower price-to-earnings ratio than Magnachip Semiconductor, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
74.3% of Magnachip Semiconductor shares are owned by institutional investors. Comparatively, 94.7% of Cohu shares are owned by institutional investors. 10.9% of Magnachip Semiconductor shares are owned by insiders. Comparatively, 3.0% of Cohu shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Cohu beats Magnachip Semiconductor on 11 of the 15 factors compared between the two stocks.
About Magnachip Semiconductor
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.
About Cohu
Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, California.
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