Analyzing Himax Technologies (NASDAQ:HIMX) and First Solar (NASDAQ:FSLR)

First Solar (NASDAQ:FSLR) and Himax Technologies (NASDAQ:HIMX) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Institutional & Insider Ownership

92.1% of First Solar shares are held by institutional investors. Comparatively, 69.8% of Himax Technologies shares are held by institutional investors. 0.6% of First Solar shares are held by insiders. Comparatively, 31.5% of Himax Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares First Solar and Himax Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Solar	32.41%	17.56%	11.46%
Himax Technologies	8.77%	9.06%	4.78%

Analyst Recommendations

This is a breakdown of recent ratings for First Solar and Himax Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	0	3	23	1	2.93
Himax Technologies	0	0	0	0	0.00

First Solar currently has a consensus target price of $279.04, indicating a potential upside of 44.90%. Given First Solar’s stronger consensus rating and higher possible upside, research analysts plainly believe First Solar is more favorable than Himax Technologies.

Volatility & Risk

First Solar has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Himax Technologies has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Earnings & Valuation

This table compares First Solar and Himax Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$3.32 billion	6.21	$830.78 million	$11.61	16.59
Himax Technologies	$945.43 million	0.95	$50.62 million	$0.44	11.68

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

Summary

First Solar beats Himax Technologies on 13 of the 15 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

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.