Corning (NYSE:GLW) vs. Advantest (OTCMKTS:ATEYY) Financial Analysis

Advantest (OTCMKTS:ATEYY) and Corning (NYSE:GLW) are both large-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Advantest and Corning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantest	39.57%	67.22%	45.56%
Corning	12.13%	20.83%	8.39%

Valuation and Earnings

This table compares Advantest and Corning”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantest	$7.50 billion	21.08	$2.48 billion	$4.99	43.27
Corning	$15.63 billion	6.80	$1.60 billion	$2.47	49.91

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

Risk and Volatility

Advantest has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Dividends

Advantest pays an annual dividend of $0.26 per share and has a dividend yield of 0.1%. Corning pays an annual dividend of $1.12 per share and has a dividend yield of 0.9%. Advantest pays out 5.2% of its earnings in the form of a dividend. Corning pays out 45.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Advantest and Corning, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantest	0	0	0	2	4.00
Corning	0	6	13	1	2.75

Corning has a consensus target price of $175.81, indicating a potential upside of 42.60%. Given Corning’s higher probable upside, analysts clearly believe Corning is more favorable than Advantest.

Insider and Institutional Ownership

0.0% of Advantest shares are owned by institutional investors. Comparatively, 69.8% of Corning shares are owned by institutional investors. 0.3% of Corning shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Advantest beats Corning on 10 of the 17 factors compared between the two stocks.

About Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics related products in Japan, the Americas, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Services, Support and Others segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease and other businesses. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.