Head to Head Survey: Himax Technologies (HIMX) versus On Track Innovations (OTIV)

Himax Technologies (NASDAQ:HIMX) and On Track Innovations (NASDAQ:OTIV) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Himax Technologies and On Track Innovations, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Himax Technologies 0 5 1 0 2.17
On Track Innovations 0 1 1 0 2.50

Himax Technologies presently has a consensus target price of $5.83, suggesting a potential upside of 69.57%. On Track Innovations has a consensus target price of $2.00, suggesting a potential upside of 219.95%. Given On Track Innovations’ stronger consensus rating and higher possible upside, analysts clearly believe On Track Innovations is more favorable than Himax Technologies.

Earnings & Valuation

This table compares Himax Technologies and On Track Innovations’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Himax Technologies $723.60 million 0.82 $8.57 million $0.06 57.33
On Track Innovations $21.88 million 1.18 -$260,000.00 ($0.05) -12.50

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

Profitability

This table compares Himax Technologies and On Track Innovations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Himax Technologies 1.18% 2.19% 1.20%
On Track Innovations -1.15% -12.93% -6.33%

Insider and Institutional Ownership

14.1% of Himax Technologies shares are owned by institutional investors. Comparatively, 6.0% of On Track Innovations shares are owned by institutional investors. 31.5% of Himax Technologies shares are owned by insiders. Comparatively, 1.4% of On Track Innovations 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.

Dividends

Himax Technologies pays an annual dividend of $0.09 per share and has a dividend yield of 2.6%. On Track Innovations does not pay a dividend. Himax Technologies pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Himax Technologies has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500. Comparatively, On Track Innovations has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

Himax Technologies beats On Track Innovations on 10 of the 15 factors compared between the two stocks.

Himax Technologies Company Profile

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies worldwide. The company operates in two segments, Driver IC and Non-Driver Products. It offers display driver integrated circuits (ICs) and timing controllers used in televisions (TVs), laptops, monitors, mobile phones, tablets, digital cameras, car navigation, and other consumer electronics devices. The company also designs and provides controllers for touch sensor displays; in-cell touch and display driver integration single-chip solutions; LED driver and power management ICs; scaler products for monitors and projectors; tailor-made video processing IC solutions; silicon IPs; and liquid crystal on silicon micro-displays for augmented reality (AR) devices and head-up displays for automotive industry. In addition, it offers digital camera solutions, including complementary metal oxide semiconductor image sensors and wafer level optics for AR devices, 3D sensing, and machine vision, which are used in various applications, such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, medical devices, and Internet on Things. The company markets its display drivers and display-related products to panel manufacturers, agents or distributors, module manufacturers, and assembly houses; and non-driver products to camera module manufacturers, optical engine manufacturers, and television system manufacturers. Himax Technologies, Inc. has a collaboration with Kneron to develop and commercialize a 3D sensing and AI-enabled security and surveillance solution. The company was founded in 2001 and is headquartered in Tainan City, Taiwan.

On Track Innovations Company Profile

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide. It operates through Retail and Mass Transit Ticketing; and Petroleum segments. The company offers OTI UNO, a single interface and contactless reader that support the major card associations' applications, as well as wallets such as Apple Pay, Google Pay, and Samsung Pay; OTI TRIO, a near-field communication and contactless reader, which offers three-in-one cashless payment card options comprising magnetic stripe (swipe), contact (chip), and contactless (tap); and OTI Interno, an original equipment manufacturer reader module with integrated antenna used for integration into mass transit validators and terminals. It also provides OTI TeleBox which enables communication between machines primarily for vending machines, kiosks, and meters; OTI GoBox, a machine-to-machine cashless payment and telemetry gateway primarily used to stream Full-HD media and run either Linux or Android; otiMetry, a telemetry solution for smart vending which also enables cashless payments; otiKiosk, a cashless payment acceptance and remote management solution for kiosks and self-service environments; and otiPulse, a cashless payment solution for pulse operated machines. In addition, the company offers ticket vending machines which are encoding and loading electronic card tickets for the public transport and for selling paper tickets, as well as resells tickets through point of sale terminals. Further, it provides EasyFuel Plus, a fuel management solution used to control and manage refueling operations; and MediSmart, an information management and claims submission system for the medical sector. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was founded in 1990 and is headquartered in Rosh Pina, Israel.

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