Analyzing Pixelworks (NASDAQ:PXLW) & SEALSQ (NASDAQ:LAES)

Pixelworks (NASDAQ:PXLW) and SEALSQ (NASDAQ:LAES) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

21.4% of Pixelworks shares are owned by institutional investors. Comparatively, 1.3% of SEALSQ shares are owned by institutional investors. 4.7% of Pixelworks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Pixelworks and SEALSQ’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pixelworks	$65.77 million	0.91	-$26.18 million	($0.39)	-2.67
SEALSQ	$30.06 million	0.45	-$3.27 million	N/A	N/A

SEALSQ has lower revenue, but higher earnings than Pixelworks.

Analyst Ratings

This is a summary of recent ratings and price targets for Pixelworks and SEALSQ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pixelworks	0	0	3	0	3.00
SEALSQ	0	0	0	0	N/A

Pixelworks currently has a consensus target price of $2.50, indicating a potential upside of 140.38%. Given Pixelworks’ higher probable upside, equities research analysts plainly believe Pixelworks is more favorable than SEALSQ.

Risk & Volatility

Pixelworks has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, SEALSQ has a beta of 3.36, indicating that its share price is 236% more volatile than the S&P 500.

Profitability

This table compares Pixelworks and SEALSQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pixelworks	-33.22%	-55.94%	-22.24%
SEALSQ	N/A	N/A	N/A

Summary

Pixelworks beats SEALSQ on 6 of the 11 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 SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.