Brooks Automation (NASDAQ: BRKS) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitabiliy, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Brooks Automation and Amkor Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brooks Automation 0 2 4 0 2.67
Amkor Technology 1 2 0 0 1.67

Brooks Automation currently has a consensus price target of $23.33, suggesting a potential downside of 10.29%. Amkor Technology has a consensus price target of $9.10, suggesting a potential downside of 17.72%. Given Brooks Automation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Brooks Automation is more favorable than Amkor Technology.

Risk and Volatility

Brooks Automation has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.

Profitability

This table compares Brooks Automation and Amkor Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brooks Automation 7.41% 8.47% 6.75%
Amkor Technology 3.94% 11.44% 3.73%

Insider & Institutional Ownership

91.8% of Brooks Automation shares are owned by institutional investors. Comparatively, 38.9% of Amkor Technology shares are owned by institutional investors. 2.2% of Brooks Automation shares are owned by insiders. Comparatively, 58.1% of Amkor Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Brooks Automation pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Amkor Technology does not pay a dividend. Brooks Automation pays out 59.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Brooks Automation and Amkor Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brooks Automation $634.37 million 2.75 $81.74 million $0.67 38.82
Amkor Technology $3.94 billion 0.67 $829.47 million $0.65 17.02

Amkor Technology has higher revenue and earnings than Brooks Automation. Amkor Technology is trading at a lower price-to-earnings ratio than Brooks Automation, indicating that it is currently the more affordable of the two stocks.

Summary

Brooks Automation beats Amkor Technology on 10 of the 16 factors compared between the two stocks.

About Brooks Automation

Brooks Automation, Inc. is a provider of automation and cryogenic solutions for various applications and markets. The Company operates through two segments: Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers critical automated transport, vacuum and contamination controls solutions and services. Its product offerings include robots and integrated automation systems for handling of substrates. It is also a provider of cryogenic components to create vacuum and thermal stability within critical operating environments in the manufacturing process. It also offers equipment for automated contamination control, conditioning and metrology solutions for wafer and reticle carriers. The Brooks Life Science Systems segment offers sample life cycle management solutions that provide life science and bioscience customers with a range of sample management solutions for scientific research and support drug development.

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.

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