Critical Comparison: STR Holdings (STRI) and Chipmos Technologies (NASDAQ:IMOS)
STR Holdings (NASDAQ: STRI) and Chipmos Technologies (NASDAQ:IMOS) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitabiliy.
Insider and Institutional Ownership
23.6% of Chipmos Technologies shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares STR Holdings and Chipmos Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|STR Holdings||$17.40 million||N/A||-$10.40 million||N/A||N/A|
Chipmos Technologies has higher revenue, but lower earnings than STR Holdings.
This table compares STR Holdings and Chipmos Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Chipmos Technologies pays an annual dividend of $1.49 per share and has a dividend yield of 7.4%. STR Holdings does not pay a dividend. Chipmos Technologies pays out 65.0% of its earnings in the form of a dividend.
This is a summary of current recommendations for STR Holdings and Chipmos Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chipmos Technologies has a consensus price target of $22.00, indicating a potential upside of 9.95%. Given Chipmos Technologies’ higher probable upside, analysts clearly believe Chipmos Technologies is more favorable than STR Holdings.
Chipmos Technologies beats STR Holdings on 7 of the 9 factors compared between the two stocks.
About STR Holdings
STR Holdings, Inc. is a holding company. The Company is a provider of encapsulants to the solar industry. Encapsulant is a component used to protect solar cells and hold solar modules together. The Company has developed ethylene-vinyl acetate (EVA)-based encapsulants for use in commercial solar module manufacturing. The Company’s encapsulant formulations offer a range of properties and processing attributes, including various curing times and temperatures that align with the requirements of its customers’ individual lamination processes and module constructions. The Company’s formulations can be used in both crystalline silicon and thin-film modules. The Company operates production facilities in Llanera, Asturias, Spain and Shajiabang, Changshu, Jiangsu Province, China. It has a total annual production capacity of approximately 5.1 gigawatts. Its customers are solar module manufacturers located mainly in North America, Europe and Asia.
About Chipmos Technologies
ChipMOS TECHNOLOGIES (Bermuda) LTD. is a holding company. The Company is a provider of semiconductor assembly and test services. The Company provides testing and assembly services for liquid crystal display (LCD) and other flat-panel display driver semiconductors in Taiwan, and for memory and logic/mixed-signal products in Taiwan and Mainland China. The Company’s business segments are testing services for memory and logic/mixed-signal semiconductors; assembly services for memory and logic/mixed-signal semiconductors; LCD and other flat-panel display driver semiconductor testing and assembly services, and bumping services for memory, logic/mixed-signal and LCD and other flat-panel display driver semiconductors. The Company provides testing services for a range of memory semiconductors, such as Static Random Access Memory (SRAM), Dynamic Random Access Memory (DRAM) and Flash memory. Its production facilities are located in Hsinchu and Tainan, Taiwan and Shanghai, Mainland China.
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