Finisar (NASDAQ:FNSR) and Pixelworks (NASDAQ:PXLW) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
This table compares Finisar and Pixelworks’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
This is a breakdown of current ratings and price targets for Finisar and Pixelworks, as reported by MarketBeat.com.
||Strong Buy Ratings
Finisar presently has a consensus target price of $25.53, indicating a potential upside of 13.30%. Pixelworks has a consensus target price of $7.00, indicating a potential upside of 109.58%. Given Pixelworks’ stronger consensus rating and higher probable upside, analysts plainly believe Pixelworks is more favorable than Finisar.
Risk and Volatility
Finisar has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Pixelworks has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.
Institutional & Insider Ownership
94.2% of Finisar shares are held by institutional investors. Comparatively, 35.3% of Pixelworks shares are held by institutional investors. 1.1% of Finisar shares are held by company insiders. Comparatively, 4.6% of Pixelworks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Finisar and Pixelworks’ revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Pixelworks has lower revenue, but higher earnings than Finisar. Pixelworks is trading at a lower price-to-earnings ratio than Finisar, indicating that it is currently the more affordable of the two stocks.
Finisar beats Pixelworks on 8 of the 14 factors compared between the two stocks.
Finisar Company Profile
Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United States, China, Malaysia, and internationally. The company’s optical subsystems primarily include transmitters, receivers, transceivers, transponders, and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in wireline networks comprising switches, routers, and servers, as well as wireless networks, such as antennas and base stations. It also offers wavelength selective switches that are used to switch network traffic from one optical fiber to various other fibers without converting to an electronic signal. In addition, the company provides packaged laser, receivers, and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. It markets its products through direct sales force, as well as distributors, manufacturers’ representatives and resellers, and system integrators; and to the manufacturers of storage systems and telecommunication equipment, as well as to their contract manufacturers. Finisar Corporation was founded in 1987 and is headquartered in Sunnyvale, California.
Pixelworks Company Profile
Pixelworks, Inc. designs, develops, and markets video processing semiconductors, intellectual property cores, software, and custom application specific integrated circuits (ICs) solutions for video applications. Its products enable customers to deliver the energy efficient video quality on their devices. The company provides video display processor products, including image processor ICs, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; and video co-processor ICs that work with an image processor to post-process video signals to enhance the performance or feature set of the overall video solution, as well as transcoder ICs, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing for converting bitrates, resolutions, and codecs. As of December 31, 2017, it had an intellectual property portfolio of 536 patents related to the visual display of digital image data. The company’s products are used in digital projection systems, tablets, and smartphones, as well as over-the-air streaming devices. Pixelworks, Inc. sells its products through a direct sales force, as well as distributors and manufacturers’ representatives worldwide. The company was founded in 1997 and is based in San Jose, California.
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