Chipmos Technologies (NASDAQ: IMOS) and Tessera Holding Corporation (NASDAQ:XPER) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Chipmos Technologies and Tessera Holding Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chipmos Technologies 0 0 1 0 3.00
Tessera Holding Corporation 0 0 1 0 3.00

Chipmos Technologies presently has a consensus price target of $22.00, suggesting a potential upside of 15.49%. Tessera Holding Corporation has a consensus price target of $53.00, suggesting a potential upside of 96.30%. Given Tessera Holding Corporation’s higher possible upside, analysts plainly believe Tessera Holding Corporation is more favorable than Chipmos Technologies.

Profitability

This table compares Chipmos Technologies and Tessera Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chipmos Technologies 17.63% 8.46% 4.56%
Tessera Holding Corporation -12.22% 11.06% 5.46%

Dividends

Chipmos Technologies pays an annual dividend of $1.49 per share and has a dividend yield of 7.8%. Tessera Holding Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Chipmos Technologies pays out 65.0% of its earnings in the form of a dividend. Tessera Holding Corporation pays out -111.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Chipmos Technologies has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Tessera Holding Corporation has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares Chipmos Technologies and Tessera Holding Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chipmos Technologies $607.55 million 26.86 $185.29 million $2.29 8.31
Tessera Holding Corporation N/A N/A N/A ($0.72) -37.50

Chipmos Technologies has higher revenue and earnings than Tessera Holding Corporation. Tessera Holding Corporation is trading at a lower price-to-earnings ratio than Chipmos Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

23.2% of Chipmos Technologies shares are owned by institutional investors. Comparatively, 99.6% of Tessera Holding Corporation shares are owned by institutional investors. 2.4% of Tessera Holding Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Tessera Holding Corporation beats Chipmos Technologies on 8 of the 12 factors compared between the two stocks.

Chipmos Technologies Company Profile

ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.

Tessera Holding Corporation Company Profile

Tessera Holding Corporation is a product and technology licensing company. The Company’s technologies and intellectual property are deployed, in areas, such as audio, computational imaging, computer vision, mobile computing and communications, memory, data storage, three dimensional (3D) semiconductor interconnect and packaging. The Company delivers smart sight and sound solutions, and 3D semiconductor interconnect solutions for mobile devices, consumer electronics, and automotive markets. The Company also addresses technologies, such as Internet of Things (IoT) and augmented reality/virtual reality (AR/VR). It offers audio solutions for mobile devices, home theater systems and cinema. The Company’s subsidiaries include Tessera Technologies, Inc., DTS, Inc., Invensas Corporation and FotoNation.

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