Magnachip Semiconductor (NYSE:MX) and Energous (NASDAQ:WATT) Critical Survey
by Sarita Garza · The Markets DailyMagnachip Semiconductor (NYSE:MX – Get Free Report) and Energous (NASDAQ:WATT – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Valuation and Earnings
This table compares Magnachip Semiconductor and Energous”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnachip Semiconductor | $177.43 million | 0.55 | -$29.72 million | ($0.84) | -3.08 |
| Energous | $5.63 million | 8.68 | -$9.59 million | ($2.21) | -4.00 |
Energous has lower revenue, but higher earnings than Magnachip Semiconductor. Energous is trading at a lower price-to-earnings ratio than Magnachip Semiconductor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Magnachip Semiconductor has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Energous has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Magnachip Semiconductor and Energous, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnachip Semiconductor | 1 | 1 | 0 | 0 | 1.50 |
| Energous | 1 | 1 | 0 | 0 | 1.50 |
Profitability
This table compares Magnachip Semiconductor and Energous’ 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% |
| Energous | -76.37% | -28.67% | -24.91% |
Institutional and Insider Ownership
74.3% of Magnachip Semiconductor shares are held by institutional investors. Comparatively, 4.3% of Energous shares are held by institutional investors. 10.9% of Magnachip Semiconductor shares are held by company insiders. Comparatively, 0.2% of Energous shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Magnachip Semiconductor beats Energous on 8 of the 10 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 Energous
Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.