Pixelworks (NASDAQ:PXLW) and On Track Innovations (NASDAQ:OTIV) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Earnings & Valuation
This table compares Pixelworks and On Track Innovations’ top-line revenue, earnings per share and valuation.
On Track Innovations has lower revenue, but higher earnings than Pixelworks. Pixelworks is trading at a lower price-to-earnings ratio than On Track Innovations, indicating that it is currently the more affordable of the two stocks.
This table compares Pixelworks and On Track Innovations’ net margins, return on equity and return on assets.
This is a breakdown of current ratings and price targets for Pixelworks and On Track Innovations, as provided by MarketBeat.com.
Pixelworks presently has a consensus price target of $7.75, indicating a potential upside of 131.34%. On Track Innovations has a consensus price target of $2.00, indicating a potential upside of 140.96%. Given On Track Innovations’ higher probable upside, analysts clearly believe On Track Innovations is more favorable than Pixelworks.
Institutional and Insider Ownership
35.3% of Pixelworks shares are owned by institutional investors. Comparatively, 5.0% of On Track Innovations shares are owned by institutional investors. 4.1% of Pixelworks shares are owned by insiders. Comparatively, 1.4% of On Track Innovations shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Pixelworks has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, On Track Innovations has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Pixelworks beats On Track Innovations on 9 of the 14 factors compared between the two stocks.
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.
About On Track Innovations
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.