Kulicke and Soffa Industries (NASDAQ:KLIC – Get Rating) and NXP Semiconductors (NASDAQ:NXPI – Get Rating) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Earnings & Valuation
This table compares Kulicke and Soffa Industries and NXP Semiconductors’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kulicke and Soffa Industries||$1.50 billion||1.98||$433.55 million||$5.20||10.09|
|NXP Semiconductors||$13.21 billion||3.48||$2.79 billion||$10.56||16.79|
NXP Semiconductors has higher revenue and earnings than Kulicke and Soffa Industries. Kulicke and Soffa Industries is trading at a lower price-to-earnings ratio than NXP Semiconductors, indicating that it is currently the more affordable of the two stocks.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kulicke and Soffa Industries||0||1||2||0||2.67|
Kulicke and Soffa Industries currently has a consensus target price of $61.67, suggesting a potential upside of 17.48%. NXP Semiconductors has a consensus target price of $188.95, suggesting a potential upside of 6.58%. Given Kulicke and Soffa Industries’ stronger consensus rating and higher probable upside, equities analysts clearly believe Kulicke and Soffa Industries is more favorable than NXP Semiconductors.
This table compares Kulicke and Soffa Industries and NXP Semiconductors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kulicke and Soffa Industries||25.80%||28.72%||21.41%|
Institutional and Insider Ownership
99.0% of Kulicke and Soffa Industries shares are held by institutional investors. Comparatively, 88.7% of NXP Semiconductors shares are held by institutional investors. 3.1% of Kulicke and Soffa Industries shares are held by company insiders. Comparatively, 0.1% of NXP Semiconductors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Kulicke and Soffa Industries has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.
Kulicke and Soffa Industries pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. NXP Semiconductors pays an annual dividend of $4.06 per share and has a dividend yield of 2.3%. Kulicke and Soffa Industries pays out 14.6% of its earnings in the form of a dividend. NXP Semiconductors pays out 38.4% 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. Kulicke and Soffa Industries has increased its dividend for 3 consecutive years and NXP Semiconductors has increased its dividend for 3 consecutive years.
NXP Semiconductors beats Kulicke and Soffa Industries on 10 of the 17 factors compared between the two stocks.
About Kulicke and Soffa Industries
Kulicke & Soffa Industries, Inc. engages in the design, manufacture, and sale of capital equipment and tools used to assemble semiconductor devices, including integrated circuits (“ICs“), high and low powered discrete devices, light-emitting diodes (“LEDs“), and power modules. The firm operates through the Capital Equipment, and Aftermarket Products and Services (APS) segments. The Capital Equipment segment is affected by the industry’s internal cyclical and seasonal dynamics in addition to broader macroeconomic factors that can positively or negatively affect company financial performance. The APS segment is more directly tied to semiconductor unit consumption rather than capacity requirements and production capability improvements. The company was founded by Frederick W. Kulicke and Albert Soffa in 1951 and is headquartered in Fort Washington, PA.
About NXP Semiconductors
NXP Semiconductors NV is a holding company, which engages in the provision of semiconductor solutions. Its portfolio includes intellectual property, deep application knowledge, process technology and manufacturing expertise in the domains of cryptography-security, high-speed interface, radio frequency (RF), mixed-signal analog-digital, power management, digital signal processing, and embedded system design. Its product solutions are used in a wide range of end market applications including: automotive, industrial and Internet of Things (IoT), mobile, and communication infrastructure. It operates through the following geographical segments: China, Netherlands, United States, Singapore, Germany, Japan, South Korea, Malaysia, and Other Countries. The company was founded on August 2, 2006, and is headquartered in Eindhoven, the Netherlands.
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