Kulicke and Soffa Industries (NASDAQ: KLIC) and Ultratech (NASDAQ:UTEK) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Earnings and Valuation
This table compares Kulicke and Soffa Industries and Ultratech’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kulicke and Soffa Industries||$809.00 million||2.15||$112.01 million||$1.55||15.93|
Risk & Volatility
Kulicke and Soffa Industries has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Ultratech has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.
This is a summary of current ratings for Kulicke and Soffa Industries and Ultratech, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kulicke and Soffa Industries||1||0||2||0||2.33|
Kulicke and Soffa Industries currently has a consensus target price of $29.17, suggesting a potential upside of 18.13%. Ultratech has a consensus target price of $28.88, suggesting a potential downside of 4.47%. Given Kulicke and Soffa Industries’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Kulicke and Soffa Industries is more favorable than Ultratech.
Institutional and Insider Ownership
85.4% of Kulicke and Soffa Industries shares are held by institutional investors. Comparatively, 92.7% of Ultratech shares are held by institutional investors. 1.0% of Kulicke and Soffa Industries shares are held by company insiders. Comparatively, 5.9% of Ultratech shares are held by company 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.
This table compares Kulicke and Soffa Industries and Ultratech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kulicke and Soffa Industries||16.85%||15.13%||11.68%|
Kulicke and Soffa Industries beats Ultratech on 9 of the 12 factors compared between the two stocks.
About Kulicke and Soffa Industries
Kulicke and Soffa Industries, Inc. designs, manufactures and sells capital equipment and expendable tools, as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company supplies a range of bonding equipment. The Company operates through two segments: Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging and surface mount technology solutions. The Expendable Tools segment manufactures and sells expendable tools for a range of semiconductor packaging applications. It offers capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes and power modules. Its customers primarily consist of semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers and automotive electronics suppliers.
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.
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