Electro Scientific Industries (NASDAQ: ESIO) and Amkor Technology (NASDAQ:AMKR) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitabiliy, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Electro Scientific Industries and Amkor Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electro Scientific Industries 0 1 1 0 2.50
Amkor Technology 1 2 0 0 1.67

Electro Scientific Industries presently has a consensus price target of $9.00, indicating a potential upside of 9.22%. Amkor Technology has a consensus price target of $9.10, indicating a potential downside of 13.83%. Given Electro Scientific Industries’ stronger consensus rating and higher possible upside, equities analysts plainly believe Electro Scientific Industries is more favorable than Amkor Technology.

Risk and Volatility

Electro Scientific Industries has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500.

Insider and Institutional Ownership

73.0% of Electro Scientific Industries shares are held by institutional investors. Comparatively, 38.8% of Amkor Technology shares are held by institutional investors. 4.4% of Electro Scientific Industries shares are held by company insiders. Comparatively, 58.1% of Amkor Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Electro Scientific Industries -35.90% -47.29% -33.22%
Amkor Technology 3.94% 11.44% 3.73%

Earnings & Valuation

This table compares Electro Scientific Industries and Amkor Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Electro Scientific Industries $161.02 million 1.70 -$9.62 million ($1.13) -7.29
Amkor Technology $3.94 billion 0.64 $829.47 million $0.65 16.25

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

Summary

Amkor Technology beats Electro Scientific Industries on 8 of the 13 factors compared between the two stocks.

Electro Scientific Industries Company Profile

Electro Scientific Industries, Inc. and its subsidiaries supply laser-based manufacturing solutions for industries reliant on microtechnologies. The Company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device. Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials. It has operations in Asia, Europe and North America.

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.

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