Head-To-Head Review: Himax Technologies (HIMX) and Cypress Semiconductor Corporation (CY)
Himax Technologies (NASDAQ: HIMX) and Cypress Semiconductor Corporation (NASDAQ:CY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Himax Technologies pays an annual dividend of $0.23 per share and has a dividend yield of 2.3%. Cypress Semiconductor Corporation pays an annual dividend of $0.44 per share and has a dividend yield of 3.2%. Himax Technologies pays out 191.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cypress Semiconductor Corporation pays out -110.0% of its earnings in the form of a dividend. Cypress Semiconductor Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and price targets for Himax Technologies and Cypress Semiconductor Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cypress Semiconductor Corporation||0||1||11||0||2.92|
Himax Technologies presently has a consensus price target of $8.50, indicating a potential downside of 13.44%. Cypress Semiconductor Corporation has a consensus price target of $16.91, indicating a potential upside of 23.42%. Given Cypress Semiconductor Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Cypress Semiconductor Corporation is more favorable than Himax Technologies.
This table compares Himax Technologies and Cypress Semiconductor Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cypress Semiconductor Corporation||-6.04%||6.27%||3.10%|
Volatility & Risk
Himax Technologies has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Cypress Semiconductor Corporation has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.
Valuation & Earnings
This table compares Himax Technologies and Cypress Semiconductor Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cypress Semiconductor Corporation||$2.18 billion||2.09||$232.52 million||($0.40)||-34.25|
Cypress Semiconductor Corporation has higher revenue and earnings than Himax Technologies. Cypress Semiconductor Corporation is trading at a lower price-to-earnings ratio than Himax Technologies, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
21.7% of Himax Technologies shares are owned by institutional investors. Comparatively, 97.4% of Cypress Semiconductor Corporation shares are owned by institutional investors. 31.5% of Himax Technologies shares are owned by insiders. Comparatively, 0.7% of Cypress Semiconductor Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Cypress Semiconductor Corporation beats Himax Technologies on 9 of the 12 factors compared between the two stocks.
Himax Technologies Company Profile
Himax Technologies, Inc. is a fabless semiconductor solution provider. The Company is engaged in display driver integrated circuits (IC) and timing controllers used in televisions, laptops, monitors, mobile phones, tablets, digital cameras, car navigation and other consumer electronics devices. The Company operates through two segments: Driver IC and Non-driver products. In addition, the Company designs and provides controllers for touch sensor displays, liquid crystal on silicon micro-displays used in palm-size projectors and head-mounted displays, light-emitting diode driver ICs, power management ICs, scaler products for monitors and projectors, video processing IC solutions and silicon IPs. It also offers digital camera solutions, including complementary metal-oxide-semiconductor image sensors and wafer level optics, which are used in a range of applications, such as mobile phone, tablet, laptop, televisions, personal computer camera, automobile, security and medical devices.
Cypress Semiconductor Corporation Company Profile
Cypress Semiconductor Corporation manufactures embedded system solutions for automotive, industrial, home automation and appliances, consumer electronics and medical products. The Company’s segments include Microcontroller and Connectivity Division (MCD), and Memory Products Division (MPD). MCD focuses on microcontroller (MCU), analog and wireless and wired connectivity solutions. MPD focuses on parallel and serial NOR flash memories, NAND flash memories, static random access memory (SRAM), ferroelectric-random access memory (F-RAM) ferroelectric memory devices and other specialty memories. The Company’s products include Traveo MCUs and Flexible MCUs; PSoC 1, PSoC 3, PSoC 4 and PSoC 5LP; CapSense, and TrueTouch Analog Power Management integrated circuits (PMICs) and energy harvesting solutions.
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