Financial Analysis: NXP Semiconductors (NASDAQ:NXPI) vs. Alimco Financial (OTCMKTS:ALMC)

NXP Semiconductors (NASDAQ:NXPI) and Alimco Financial (OTCMKTS:ALMC) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares NXP Semiconductors and Alimco Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$12.61 billion	4.47	$2.51 billion	$9.73	22.87
Alimco Financial	N/A	N/A	N/A	N/A	N/A

NXP Semiconductors has higher revenue and earnings than Alimco Financial.

Profitability

This table compares NXP Semiconductors and Alimco Financial’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%
Alimco Financial	N/A	N/A	N/A

Volatility & Risk

NXP Semiconductors has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Alimco Financial has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Insider and Institutional Ownership

90.5% of NXP Semiconductors shares are held by institutional investors. Comparatively, 0.2% of Alimco Financial shares are held by institutional investors. 0.1% of NXP Semiconductors shares are held by insiders. Comparatively, 35.1% of Alimco Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NXP Semiconductors and Alimco Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	0	3	16	0	2.84
Alimco Financial	0	0	0	0	0.00

NXP Semiconductors currently has a consensus price target of $267.00, suggesting a potential upside of 19.97%. Given NXP Semiconductors’ stronger consensus rating and higher possible upside, analysts plainly believe NXP Semiconductors is more favorable than Alimco Financial.

Summary

NXP Semiconductors beats Alimco Financial on 9 of the 10 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 Alimco Financial

Alimco Financial Corporation focuses on business financing solutions. The company was formerly known as Alliance Semiconductor Corporation and changed its name to Alimco Financial Corporation in 2017. Alimco Financial Corporation was founded in 1985 and is based in West Palm Beach, Florida.