Analyzing NXP Semiconductors (NASDAQ:NXPI) & Ichor (NASDAQ:ICHR)

NXP Semiconductors (NASDAQ:NXPI) and Ichor (NASDAQ:ICHR) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for NXP Semiconductors and Ichor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	0	5	14	0	2.74
Ichor	0	2	4	1	2.86

NXP Semiconductors presently has a consensus price target of $263.15, suggesting a potential upside of 24.73%. Ichor has a consensus price target of $42.29, suggesting a potential upside of 29.12%. Given Ichor’s stronger consensus rating and higher probable upside, analysts plainly believe Ichor is more favorable than NXP Semiconductors.

Volatility & Risk

NXP Semiconductors has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Ichor has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

90.5% of NXP Semiconductors shares are owned by institutional investors. Comparatively, 94.8% of Ichor shares are owned by institutional investors. 0.1% of NXP Semiconductors shares are owned by company insiders. Comparatively, 2.2% of Ichor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares NXP Semiconductors and Ichor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NXP Semiconductors	19.90%	31.45%	12.56%
Ichor	-2.45%	-1.38%	-0.99%

Earnings and Valuation

This table compares NXP Semiconductors and Ichor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$12.61 billion	4.25	$2.80 billion	$9.73	21.68
Ichor	$849.04 million	1.30	-$42.99 million	($0.65)	-50.38

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

Summary

NXP Semiconductors beats Ichor on 9 of the 15 factors compared between the two stocks.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.