Chipmos Technologies (NASDAQ: IMOS) and Nanometrics (NASDAQ:NANO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Chipmos Technologies pays an annual dividend of $0.46 per share and has a dividend yield of 2.6%. Nanometrics does not pay a dividend. Chipmos Technologies pays out 17.4% of its earnings in the form of a dividend.
16.4% of Chipmos Technologies shares are held by institutional investors. Comparatively, 83.2% of Nanometrics shares are held by institutional investors. 6.7% of Nanometrics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Chipmos Technologies and Nanometrics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Chipmos Technologies and Nanometrics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nanometrics has a consensus target price of $32.50, indicating a potential upside of 30.16%. Given Nanometrics’ higher possible upside, analysts clearly believe Nanometrics is more favorable than Chipmos Technologies.
Volatility and Risk
Chipmos Technologies has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Nanometrics has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
Earnings and Valuation
This table compares Chipmos Technologies and Nanometrics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chipmos Technologies||$567.50 million||1.32||$43.24 million||$2.64||6.65|
|Nanometrics||$221.13 million||2.89||$44.03 million||$1.79||13.95|
Nanometrics has lower revenue, but higher earnings than Chipmos Technologies. Chipmos Technologies is trading at a lower price-to-earnings ratio than Nanometrics, indicating that it is currently the more affordable of the two stocks.
Nanometrics beats Chipmos Technologies on 12 of the 15 factors compared between the two stocks.
About Chipmos Technologies
ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.
Nanometrics Incorporated is a provider of process control metrology and inspection systems used primarily in the fabrication of semiconductors and other solid-state devices, including sensors, optoelectronic devices, high-brightness (HB) light emitting diodes (LEDs), discretes and data storages components. The Company’s automated and integrated metrology systems measure critical dimensions, device structures, topography and various thin film properties, including three-dimensional features and film thickness, as well as optical, electrical and material properties. The Company’s process control solutions are deployed throughout the fabrication process, from front-end-of-line substrate manufacturing, to production of semiconductors and other devices, to three-dimensional wafer-level packaging applications. The Company’s automated systems primarily consist of automated metrology systems that are employed in semiconductor production environments.
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