Veeco Instruments (NASDAQ: VECO) and Pericom Semiconductor (NASDAQ:PSEM) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Institutional and Insider Ownership

98.6% of Veeco Instruments shares are held by institutional investors. 2.9% of Veeco Instruments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Veeco Instruments and Pericom Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeco Instruments 0 3 5 0 2.63
Pericom Semiconductor 0 0 0 0 N/A

Veeco Instruments currently has a consensus price target of $28.50, suggesting a potential upside of 91.92%.

Earnings & Valuation

This table compares Veeco Instruments and Pericom Semiconductor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veeco Instruments $332.45 million 2.16 -$122.21 million ($1.00) -14.85
Pericom Semiconductor N/A N/A N/A $0.56 N/A

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

Profitability

This table compares Veeco Instruments and Pericom Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veeco Instruments -10.16% -0.73% -0.47%
Pericom Semiconductor 11.19% 6.74% 5.80%

About Veeco Instruments

Veeco Instruments Inc. is engaged in the design, development, manufacture and support of thin film process equipment, primarily sold to make electronic devices. The Company’s geographical segments include the United States; China; Europe, Middle East and Africa (EMEA), and Rest of World (ROW). The Company’s portfolio of technology solutions focus on market areas, including Lighting, Display & Power Electronics; Advanced Packaging, micro-electromechanical systems (MEMS) & radio frequency (RF); Scientific & Industrial, and Data Storage. The Company’s equipment is used to make electronic devices, including light emitting diodes (LEDs), MEMS, wireless devices, power electronics, hard disk drives (HDDs) and semiconductor devices. The Company’s System products include Metal Organic Chemical Vapor Deposition Systems, Precision Surface Processing Systems, Ion Beam Etch and Deposition Systems, Molecular Beam Epitaxy Systems, and Other Deposition and Industrial Products.

About Pericom Semiconductor

Pericom Semiconductor Corporation (Pericom) designs, develops and markets integrated circuits (ICs) and frequency control products (FCPs). The Company’s IC products include functions that support the connectivity, timing and signal conditioning of high-speed parallel and serial protocols that transfer data among a system’s microprocessor, memory and various peripherals, and between interconnected systems. The Company has four primary IC product categories: connectivity, switching, timing and signal integrity. Pericom’s FCPs are electronic components that provide frequency references, such as crystals and oscillators for computer, communication and consumer electronic products. It enables serial connectivity with solutions for the computing, communications and consumer market segments. Its products are used in various applications, such as servers, storage, enterprise networks, telecommunications and embedded applications.

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