ASML Holding N.V. (NASDAQ: ASML) and Axcelis Technologies (NASDAQ:ACLS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitabiliy, analyst recommendations and risk.

Valuation and Earnings

This table compares ASML Holding N.V. and Axcelis Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ASML Holding N.V. N/A N/A N/A $4.42 32.41
Axcelis Technologies $286.35 million 2.44 $29.36 million $0.59 39.41

Axcelis Technologies has higher revenue and earnings than ASML Holding N.V.. ASML Holding N.V. is trading at a lower price-to-earnings ratio than Axcelis Technologies, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ASML Holding N.V. has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Axcelis Technologies has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ASML Holding N.V. and Axcelis Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASML Holding N.V. 0 8 10 0 2.56
Axcelis Technologies 0 1 3 0 2.75

ASML Holding N.V. presently has a consensus target price of $140.67, indicating a potential downside of 1.80%. Axcelis Technologies has a consensus target price of $24.80, indicating a potential upside of 6.67%. Given Axcelis Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Axcelis Technologies is more favorable than ASML Holding N.V..

Profitability

This table compares ASML Holding N.V. and Axcelis Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASML Holding N.V. 23.27% 18.64% 10.93%
Axcelis Technologies 6.48% 9.19% 6.11%

Institutional and Insider Ownership

16.4% of ASML Holding N.V. shares are owned by institutional investors. Comparatively, 77.0% of Axcelis Technologies shares are owned by institutional investors. 5.7% of Axcelis Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

ASML Holding N.V. pays an annual dividend of $1.11 per share and has a dividend yield of 0.8%. Axcelis Technologies does not pay a dividend. ASML Holding N.V. pays out 25.1% of its earnings in the form of a dividend.

Summary

Axcelis Technologies beats ASML Holding N.V. on 8 of the 14 factors compared between the two stocks.

ASML Holding N.V. Company Profile

ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.

Axcelis Technologies Company Profile

Axcelis Technologies, Inc. designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. The Company also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services and customer training. The Company offers a complete line of high energy, high current and medium current implanters for all application requirements. The Company’s Purion XE high energy system combines its radio frequency (RF) Linac high energy, spot beam technology with the Purion platform. The Company also offers the Purion M medium current system. The Company’s Purion M systems also offer differentiation for specialty applications, such as hot silicon carbide. The Company’s Purion H high current system is extendable into ultra-low energy applications to satisfy future process requirements, including leakage current performance.

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