Financial Analysis: Amkor Technology (AMKR) versus Xcerra Corporation (XCRA)
Amkor Technology (NASDAQ: AMKR) and Xcerra Corporation (NASDAQ:XCRA) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
This is a summary of recent recommendations for Amkor Technology and Xcerra Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amkor Technology currently has a consensus price target of $10.50, indicating a potential upside of 18.91%. Xcerra Corporation has a consensus price target of $10.25, indicating a potential upside of 5.78%. Given Amkor Technology’s higher probable upside, analysts clearly believe Amkor Technology is more favorable than Xcerra Corporation.
Earnings & Valuation
This table compares Amkor Technology and Xcerra Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Amkor Technology||$4.01 billion||0.53||$866.26 million||$1.11||7.95|
|Xcerra Corporation||$355.08 million||1.48||$23.08 million||$0.32||30.28|
Amkor Technology has higher revenue and earnings than Xcerra Corporation. Amkor Technology is trading at a lower price-to-earnings ratio than Xcerra Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Amkor Technology and Xcerra Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
38.7% of Amkor Technology shares are held by institutional investors. Comparatively, 86.3% of Xcerra Corporation shares are held by institutional investors. 58.1% of Amkor Technology shares are held by insiders. Comparatively, 2.6% of Xcerra Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Amkor Technology has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500. Comparatively, Xcerra Corporation has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.
Amkor Technology beats Xcerra Corporation on 8 of the 12 factors compared between the two stocks.
About Amkor Technology
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.
About Xcerra Corporation
Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.
Receive News & Ratings for Amkor Technology Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Amkor Technology Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.