Analyzing Himax Technologies (NASDAQ:HIMX) & Aeluma (NASDAQ:ALMU)

Himax Technologies (NASDAQ:HIMX) and Aeluma (NASDAQ:ALMU) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Volatility & Risk

Himax Technologies has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500. Comparatively, Aeluma has a beta of 4.07, indicating that its share price is 307% more volatile than the S&P 500.

Profitability

This table compares Himax Technologies and Aeluma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Himax Technologies	4.26%	3.90%	2.04%
Aeluma	-115.57%	-12.03%	-11.42%

Insider and Institutional Ownership

69.8% of Himax Technologies shares are held by institutional investors. 31.5% of Himax Technologies shares are held by company insiders. Comparatively, 14.7% of Aeluma shares are held by company 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himax Technologies	$832.17 million	2.89	$43.94 million	$0.21	65.62
Aeluma	$4.66 million	52.02	-$3.02 million	($0.35)	-37.83

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Himax Technologies and Aeluma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himax Technologies	0	3	0	0	2.00
Aeluma	1	0	2	1	2.75

Himax Technologies presently has a consensus price target of $8.00, suggesting a potential downside of 41.94%. Aeluma has a consensus price target of $25.00, suggesting a potential upside of 88.82%. Given Aeluma’s stronger consensus rating and higher probable upside, analysts plainly believe Aeluma is more favorable than Himax Technologies.

Summary

Himax Technologies beats Aeluma on 9 of the 15 factors compared between the two stocks.

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.

About Aeluma

Aeluma, Inc. develops optoelectronic and electronic devices in the United States. The company manufactures semiconductor materials and chips using compound semiconductors on diameter substrates that are used to manufacture mass market microelectronics. It offers its devices for use in mobile, automotive, AI, defence and aerospace, communication, AR/VR, and HPC applications, as well as laser emitters, transistors for integrated circuits, quantum photonic circuits, and solar cells applications. Aeluma, Inc. was formerly known as Parc Investments, Inc. and changed its name to Aeluma, Inc. June 2021. The company was founded in 2019 and is headquartered in Goleta, California.