AXT (AXTI) versus Its Peers Head to Head Review

AXT (NASDAQ: AXTI) is one of 105 public companies in the “Semiconductors” industry, but how does it compare to its peers? We will compare AXT to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.

Institutional & Insider Ownership

61.9% of AXT shares are held by institutional investors. Comparatively, 66.5% of shares of all “Semiconductors” companies are held by institutional investors. 6.9% of AXT shares are held by insiders. Comparatively, 6.6% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AXT and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AXT 8.15% 4.61% 4.10%
AXT Competitors -47.37% -0.05% -0.13%

Risk & Volatility

AXT has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, AXT’s peers have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for AXT and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AXT 0 1 3 0 2.75
AXT Competitors 908 4729 8645 361 2.58

AXT presently has a consensus target price of $9.63, indicating a potential upside of 2.39%. As a group, “Semiconductors” companies have a potential upside of 9.93%. Given AXT’s peers higher possible upside, analysts plainly believe AXT has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares AXT and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AXT $86.31 million $13.40 million 47.00
AXT Competitors $4.56 billion $1.34 billion 82.74

AXT’s peers have higher revenue and earnings than AXT. AXT is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

AXT beats its peers on 7 of the 13 factors compared.

AXT Company Profile

AXT, Inc. (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials. The Company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). The Company uses its Vertical Gradient Freeze (VGF) technique for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots used to produce wafers for diverse electronic and optoelectronic device and circuit applications.

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