Ultratech (UTEK) & Amkor Technology (AMKR) Financial Analysis

Ultratech (NASDAQ: UTEK) and Amkor Technology (NASDAQ:AMKR) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Valuation and Earnings

This table compares Ultratech and Amkor Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ultratech N/A N/A N/A $0.42 71.98
Amkor Technology $4.01 billion 0.50 $866.26 million $1.11 7.55

Amkor Technology has higher revenue and earnings than Ultratech. Amkor Technology is trading at a lower price-to-earnings ratio than Ultratech, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.7% of Ultratech shares are held by institutional investors. Comparatively, 38.8% of Amkor Technology shares are held by institutional investors. 5.9% of Ultratech shares are held by insiders. Comparatively, 58.1% of Amkor Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ultratech and Amkor Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ultratech 5.17% 3.22% 2.83%
Amkor Technology 6.63% 12.95% 4.35%

Risk and Volatility

Ultratech has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Ultratech and Amkor Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ultratech 0 3 0 0 2.00
Amkor Technology 0 1 0 0 2.00

Ultratech currently has a consensus price target of $28.88, indicating a potential downside of 4.47%. Amkor Technology has a consensus price target of $10.50, indicating a potential upside of 25.30%. Given Amkor Technology’s higher possible upside, analysts plainly believe Amkor Technology is more favorable than Ultratech.

Summary

Amkor Technology beats Ultratech on 8 of the 9 factors compared between the two stocks.

Ultratech Company Profile

Ultratech, Inc. (Ultratech) develops, manufactures and markets photolithography, laser thermal processing and inspection equipment. The Company operates through the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components segment. The Company serves manufacturers of semiconductor devices, including packaging processes and various nanotechnology components such as laser diodes, high-brightness light emitting diodes (HBLEDs) and micro-electro-mechanical systems (MEMS), as well as atomic layer deposition systems (ALD) for customers located throughout the world. It has operations in North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia.

Amkor Technology Company Profile

Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company’s packaging and test services are designed to meet application and chip specific requirements, including the type of interconnect technology; size, thickness and electrical, and mechanical and thermal performance. It provides packaging and test services, including semiconductor wafer bump, wafer probe, wafer backgrind, package design, packaging, system-level, and final test and drop shipment services. The Company provides its services to integrated device manufacturers (IDMs), fabless semiconductor companies and contract foundries. IDMs design, manufacture, package and test semiconductors in their own facilities. The Company offers a range of advanced and mainstream packaging and test services. The Company’s mainstream packages include leadframe packages, substrate-based wirebond packages and micro-electro-mechanical systems packages.

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