Critical Survey: Semiconductor Manufacturing International (OTCMKTS:SMICY) vs. Himax Technologies (NASDAQ:HIMX)

Himax Technologies (NASDAQ:HIMX) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Himax Technologies and Semiconductor Manufacturing International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himax Technologies	0	0	0	0	N/A
Semiconductor Manufacturing International	0	0	0	0	N/A

Insider & Institutional Ownership

69.8% of Himax Technologies shares are owned by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are owned by institutional investors. 31.5% of Himax Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Himax Technologies and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Himax Technologies	8.42%	8.94%	4.68%
Semiconductor Manufacturing International	14.53%	4.00%	2.62%

Earnings & Valuation

This table compares Himax Technologies and Semiconductor Manufacturing International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himax Technologies	$945.43 million	1.02	$50.62 million	$0.27	20.45
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67

Semiconductor Manufacturing International has higher revenue and earnings than Himax Technologies. Himax Technologies is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Himax Technologies has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Summary

Himax Technologies beats Semiconductor Manufacturing International on 6 of the 11 factors compared between the two stocks.

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.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.