MagneGas (NASDAQ: ASML) and ASML (NASDAQ:ASML) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for MagneGas and ASML, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MagneGas 0 0 1 0 3.00
ASML 1 3 8 0 2.58

MagneGas presently has a consensus target price of $6.00, indicating a potential upside of 2,522.38%. ASML has a consensus target price of $207.33, indicating a potential upside of 5.05%. Given MagneGas’ stronger consensus rating and higher probable upside, analysts plainly believe MagneGas is more favorable than ASML.

Profitability

This table compares MagneGas and ASML’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MagneGas -304.45% -146.19% -101.93%
ASML 23.86% 22.51% 13.22%

Insider and Institutional Ownership

1.3% of MagneGas shares are held by institutional investors. Comparatively, 16.9% of ASML shares are held by institutional investors. 4.5% of MagneGas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

ASML pays an annual dividend of $1.44 per share and has a dividend yield of 0.7%. MagneGas does not pay a dividend. ASML pays out 25.9% of its earnings in the form of a dividend. ASML has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares MagneGas and ASML’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MagneGas $3.71 million 1.17 -$11.02 million N/A N/A
ASML $10.23 billion 8.25 $2.39 billion $5.57 35.43

ASML has higher revenue and earnings than MagneGas.

Risk and Volatility

MagneGas has a beta of -0.61, indicating that its stock price is 161% less volatile than the S&P 500. Comparatively, ASML has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Summary

ASML beats MagneGas on 11 of the 15 factors compared between the two stocks.

MagneGas Company Profile

MagneGas Corporation, an alternative energy company, creates and produces hydrogen based fuel through the gasification of liquid and liquid waste in the United States and internationally. It offers MagneGas2, a hydrogen-based fuel for metal cutting as an alternative to acetylene. The company also provides Plasma Arc Flow refineries, which are machines that produce MagneGas2. In addition, it sells and licenses the plasma arc technology for the processing of liquid waste. The company also distributes MagneGas2, as well as other gases and welding supplies through retail locations. MagneGas Corporation was founded in 2007 and is headquartered in Clearwater, Florida.

ASML Company Profile

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems consisting of lithography related systems primarily in the Netherlands, the United States, and Asia. It sells three categories of products, including DUV lithography, EUV lithography, and Holistic lithography solutions. The company offers TWINSCAN N)XT (DUV) systems for imaging wafers, which consists of systems that operate at a specific wavelength of the light source, such as i-line, krypton fluoride, and argon fluoride. It also provides TWINSCAN NXE (EUV) lithography systems, which are equipped with new EUV light source technology and a new optical technology that uses reflective mirrors rather than the traditional lenses; and TWINSCAN XT, YieldStar, and PAS 5500. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

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