Everspin Technologies (NASDAQ:MRAM) and Pixelworks (NASDAQ:PXLW) Head-To-Head Review

Pixelworks (NASDAQ:PXLW) and Everspin Technologies (NASDAQ:MRAM) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Pixelworks has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Everspin Technologies has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Earnings and Valuation

This table compares Pixelworks and Everspin Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pixelworks	$60.70 million	0.79	-$26.18 million	($0.39)	-2.13
Everspin Technologies	$58.24 million	2.24	$9.05 million	$0.37	16.35

Everspin Technologies has lower revenue, but higher earnings than Pixelworks. Pixelworks is trading at a lower price-to-earnings ratio than Everspin Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pixelworks and Everspin Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pixelworks	-42.77%	-72.81%	-26.40%
Everspin Technologies	2.92%	3.16%	2.61%

Insider and Institutional Ownership

21.4% of Pixelworks shares are owned by institutional investors. Comparatively, 44.7% of Everspin Technologies shares are owned by institutional investors. 4.7% of Pixelworks shares are owned by insiders. Comparatively, 6.1% of Everspin Technologies 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pixelworks and Everspin Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pixelworks	0	0	3	0	3.00
Everspin Technologies	0	0	2	0	3.00

Pixelworks presently has a consensus target price of $2.33, suggesting a potential upside of 181.12%. Everspin Technologies has a consensus target price of $9.00, suggesting a potential upside of 48.76%. Given Pixelworks’ higher probable upside, equities analysts plainly believe Pixelworks is more favorable than Everspin Technologies.

Summary

Everspin Technologies beats Pixelworks on 9 of the 13 factors compared between the two stocks.

About Pixelworks

Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.

About Everspin Technologies

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.