Reviewing Texas Instruments (NASDAQ:TXN) & Pixelworks (NASDAQ:PXLW)

Pixelworks (NASDAQ:PXLW) and Texas Instruments (NASDAQ:TXN) are both 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.

Profitability

This table compares Pixelworks and Texas Instruments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pixelworks	-66.47%	-111.21%	-33.20%
Texas Instruments	30.68%	28.08%	13.64%

Volatility and Risk

Pixelworks has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Pixelworks and Texas Instruments”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pixelworks	$43.21 million	0.75	-$28.72 million	($0.49)	-1.09
Texas Instruments	$16.05 billion	9.33	$4.80 billion	$5.27	31.22

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pixelworks	0	0	3	0	3.00
Texas Instruments	4	11	9	2	2.35

Pixelworks presently has a consensus target price of $2.17, suggesting a potential upside of 305.14%. Texas Instruments has a consensus target price of $189.41, suggesting a potential upside of 15.14%. Given Pixelworks’ stronger consensus rating and higher probable upside, equities analysts plainly believe Pixelworks is more favorable than Texas Instruments.

Insider and Institutional Ownership

21.4% of Pixelworks shares are owned by institutional investors. Comparatively, 85.0% of Texas Instruments shares are owned by institutional investors. 4.7% of Pixelworks shares are owned by insiders. Comparatively, 0.6% of Texas Instruments 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.

Summary

Texas Instruments beats Pixelworks on 11 of the 15 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 Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.