Head to Head Comparison: Amkor Technology (AMKR) versus Cohu (COHU)

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

Institutional and Insider Ownership

39.4% of Amkor Technology shares are held by institutional investors. Comparatively, 83.1% of Cohu shares are held by institutional investors. 58.1% of Amkor Technology shares are held by insiders. Comparatively, 6.5% of Cohu shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Amkor Technology and Cohu’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amkor Technology $3.89 billion 0.65 $164.19 million $1.09 9.64
Cohu $282.08 million 2.33 $3.03 million $1.00 23.22

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

Profitability

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

Net Margins Return on Equity Return on Assets
Amkor Technology 6.41% 12.04% 4.18%
Cohu 8.26% 14.67% 9.82%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Amkor Technology and Cohu, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amkor Technology 0 1 0 0 2.00
Cohu 0 1 3 0 2.75

Amkor Technology presently has a consensus price target of $10.50, indicating a potential downside of 0.10%. Cohu has a consensus price target of $24.50, indicating a potential upside of 5.51%. Given Cohu’s stronger consensus rating and higher possible upside, analysts plainly believe Cohu is more favorable than Amkor Technology.

Volatility & Risk

Amkor Technology has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500. Comparatively, Cohu has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Dividends

Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Amkor Technology does not pay a dividend. Cohu pays out 24.0% of its earnings in the form of a dividend.

Summary

Cohu beats Amkor Technology on 10 of the 16 factors compared between the two stocks.

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.

Cohu Company Profile

Cohu, Inc. is a supplier of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems used by global semiconductor manufacturers and test subcontractors. It develops, manufactures, sells and services a line of equipment capable of handling a range of integrated circuits and light-emitting diodes. It operates through semiconductor equipment segment. It offers products for the pick-and-place, gravity-feed, test-in-strip and turret handling, MEMS, burn-in and system-level test markets. It sells various products, including Delta MATRiX, Delta Pyramid, Delta Eclipse, Delta LinX, Rasco SO1000, Rasco SO2000, Rasco Saturn and Jupiter, Rasco Jaguar, Ismeca NY32, Ismeca NY20 and Delta Fusion HD. Its manufacturing operations are located in Malacca, Malaysia (handlers); Poway, California (thermal subsystems); Laguna, the Philippines (kits and contactors); Kolbermoor, Germany (handlers), and Osaka, Japan (contactors).

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