Head-To-Head Review: Nanometrics (NANO) vs. ASML (ASML)

Nanometrics (NASDAQ: NANO) and ASML (NASDAQ:ASML) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Nanometrics and ASML, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nanometrics 0 0 2 0 3.00
ASML 0 5 11 0 2.69

Nanometrics currently has a consensus target price of $32.50, indicating a potential upside of 30.16%. ASML has a consensus target price of $176.17, indicating a potential upside of 0.54%. Given Nanometrics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Nanometrics is more favorable than ASML.

Volatility & Risk

Nanometrics has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, ASML has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Dividends

ASML pays an annual dividend of $1.11 per share and has a dividend yield of 0.6%. Nanometrics does not pay a dividend. ASML pays out 20.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

83.2% of Nanometrics shares are owned by institutional investors. Comparatively, 16.6% of ASML shares are owned by institutional investors. 6.7% of Nanometrics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Nanometrics and ASML’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nanometrics $221.13 million 2.89 $44.03 million $1.79 13.95
ASML $7.52 billion 10.02 $1.63 billion $5.50 31.86

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

Profitability

This table compares Nanometrics and ASML’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nanometrics 19.23% 10.26% 8.68%
ASML 23.81% 19.28% 11.25%

Summary

ASML beats Nanometrics on 10 of the 16 factors compared between the two stocks.

Nanometrics Company Profile

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.

ASML Company Profile

ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.

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