Contrasting Alimco Financial (OTCMKTS:ALMC) and NXP Semiconductors (NASDAQ:NXPI)

Alimco Financial (OTCMKTS:ALMC) and NXP Semiconductors (NASDAQ:NXPI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares Alimco Financial and NXP Semiconductors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alimco Financial	N/A	N/A	N/A	N/A	N/A
NXP Semiconductors	$12.61 billion	4.14	$2.51 billion	$9.73	21.15

NXP Semiconductors has higher revenue and earnings than Alimco Financial.

Profitability

This table compares Alimco Financial and NXP Semiconductors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alimco Financial	N/A	N/A	N/A
NXP Semiconductors	19.90%	31.45%	12.56%

Risk and Volatility

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Alimco Financial and NXP Semiconductors, as reported by MarketBeat.com.

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

NXP Semiconductors has a consensus price target of $267.00, suggesting a potential upside of 29.74%. Given NXP Semiconductors’ stronger consensus rating and higher probable upside, analysts clearly believe NXP Semiconductors is more favorable than Alimco Financial.

Institutional and Insider Ownership

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

Summary

NXP Semiconductors beats Alimco Financial on 9 of the 10 factors compared between the two stocks.

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.

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.