Critical Analysis: MagnaChip Semiconductor Corporation (MX) versus Celestica (CLS)

MagnaChip Semiconductor Corporation (NYSE: MX) and Celestica (NYSE:CLS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MagnaChip Semiconductor Corporation and Celestica, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MagnaChip Semiconductor Corporation 0 1 1 0 2.50
Celestica 0 8 2 0 2.20

MagnaChip Semiconductor Corporation currently has a consensus price target of $13.00, indicating a potential upside of 0.00%. Celestica has a consensus price target of $13.93, indicating a potential upside of 30.83%. Given Celestica’s higher probable upside, analysts plainly believe Celestica is more favorable than MagnaChip Semiconductor Corporation.

Institutional & Insider Ownership

95.6% of MagnaChip Semiconductor Corporation shares are owned by institutional investors. Comparatively, 59.8% of Celestica shares are owned by institutional investors. 3.8% of MagnaChip Semiconductor Corporation shares are owned by insiders. Comparatively, 1.0% of Celestica shares are owned by 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.

Profitability

This table compares MagnaChip Semiconductor Corporation and Celestica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MagnaChip Semiconductor Corporation -1.24% N/A -6.37%
Celestica 1.80% 11.70% 5.34%

Valuation and Earnings

This table compares MagnaChip Semiconductor Corporation and Celestica’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MagnaChip Semiconductor Corporation $687.97 million 0.65 -$29.61 million ($0.46) -28.26
Celestica $6.02 billion 0.22 $136.30 million $0.78 13.65

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

Risk & Volatility

MagnaChip Semiconductor Corporation has a beta of -0.41, meaning that its share price is 141% less volatile than the S&P 500. Comparatively, Celestica has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Summary

Celestica beats MagnaChip Semiconductor Corporation on 9 of the 13 factors compared between the two stocks.

MagnaChip Semiconductor Corporation Company Profile

MagnaChip Semiconductor Corporation is a designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (IoT) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory and Radio Frequency (RF) applications. The Company has two segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides analog and mixed-signal foundry services to semiconductor companies and Integrated Device Manufacturers (IDMs) that serve consumer, computing, communication, industrial, automotive and IoT applications. The Company manufactures wafers-based on its customers’ product designs. The Company’s Standard Products Group includes its Display Solutions and Power Solutions business lines.

Celestica Company Profile

Celestica Inc. is a provider of supply chain solutions. The Company operates in electronics manufacturing services business segment. The Company offers a range of services to its customers, including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services. Its products and services serve a range of applications, including servers; storage systems; optical equipment; aerospace and defense electronics; healthcare products and applications; semiconductor equipment, and a range of industrial and alternative energy products, including solar panels and inverters. It designs, manufactures and tests solar panels for the residential, commercial and utility scale markets. It uses technologies in the assembly and testing of its products.

Receive News & Ratings for MagnaChip Semiconductor Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MagnaChip Semiconductor Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply