Head to Head Comparison: Himax Technologies (HIMX) versus Its Rivals

Himax Technologies (NASDAQ:HIMX) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its peers? We will compare Himax Technologies to related businesses based on the strength of its dividends, profitability, valuation, risk, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Himax Technologies and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Himax Technologies	$832.17 million	$43.94 million	51.76
Himax Technologies Competitors	$7.28 billion	$2.48 billion	7.92

Himax Technologies’ peers have higher revenue and earnings than Himax Technologies. Himax Technologies is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Himax Technologies and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himax Technologies	0	3	0	0	2.00
Himax Technologies Competitors	3484	12282	25652	988	2.57

Himax Technologies presently has a consensus target price of $8.00, indicating a potential downside of 26.40%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 40.17%. Given Himax Technologies’ peers stronger consensus rating and higher probable upside, analysts clearly believe Himax Technologies has less favorable growth aspects than its peers.

Risk and Volatility

Himax Technologies has a beta of 2.46, suggesting that its stock price is 146% more volatile than the S&P 500. Comparatively, Himax Technologies’ peers have a beta of 2.80, suggesting that their average stock price is 180% more volatile than the S&P 500.

Profitability

This table compares Himax Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Himax Technologies	4.26%	3.90%	2.04%
Himax Technologies Competitors	-1,280.54%	-126.40%	-4.06%

Insider and Institutional Ownership

69.8% of Himax Technologies shares are held by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 31.5% of Himax Technologies shares are held by insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Himax Technologies pays an annual dividend of $0.24 per share and has a dividend yield of 2.2%. Himax Technologies pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 29.2% of their earnings in the form of a dividend.

Summary

Himax Technologies peers beat Himax Technologies on 8 of the 15 factors compared.

About Himax Technologies

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States. The company operates in two segments, Driver IC and Non-Driver Products. It offers display driver integrated circuits (ICs) and timing controllers that are used in televisions, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, and other products. The company also provides automotive IC solutions, including traditional driver ICs; advanced in-cell touch and display driver integration; large touch and display driver integration; and local dimming timing controllers, as well as active matrix organic light-emitting diode (AMOLED) solutions, including AMOLED drivers, timing controllers, and touch controller ICs. In addition, it offers application specific IC services; liquid crystal on silicon and micro-electro mechanical system products; Power ICs; complementary metal oxide semiconductor image sensor products; wafer level optics products; 3D sensing products; and ultralow power WiseEye smart image sensing products. The company markets its display drivers to panel manufacturers, mobile device module manufacturers, and manufacturers of end-use products. Himax Technologies, Inc. was incorporated in 2001 and is headquartered in Tainan City, Taiwan.