Reviewing NeoMagic (OTCMKTS:NMGC) & Applied Materials (NASDAQ:AMAT)

Applied Materials (NASDAQ:AMAT – Get Free Report) and NeoMagic (OTCMKTS:NMGC – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Profitability

This table compares Applied Materials and NeoMagic’s net margins, return on equity and return on assets.

Insider and Institutional Ownership

80.6% of Applied Materials shares are owned by institutional investors. 0.3% of Applied Materials shares are owned by company insiders. Comparatively, 12.7% of NeoMagic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Applied Materials and NeoMagic”s top-line revenue, earnings per share and valuation.

Applied Materials has higher revenue and earnings than NeoMagic.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Applied Materials and NeoMagic, as provided by MarketBeat.com.

Applied Materials currently has a consensus price target of $363.46, suggesting a potential downside of 2.37%. Given Applied Materials’ stronger consensus rating and higher possible upside, analysts plainly believe Applied Materials is more favorable than NeoMagic.

Risk and Volatility

Applied Materials has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, NeoMagic has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Summary

Applied Materials beats NeoMagic on 10 of the 11 factors compared between the two stocks.

About Applied Materials

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Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company was incorporated in 1967 and is headquartered in Santa Clara, California.

About NeoMagic

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NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.