Amkor Technology (NASDAQ: AMKR) and Ultratech (NASDAQ:UTEK) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Amkor Technology and Ultratech, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amkor Technology 0 2 0 0 2.00
Ultratech 0 3 0 0 2.00

Amkor Technology presently has a consensus price target of $10.50, suggesting a potential upside of 20.83%. Ultratech has a consensus price target of $28.88, suggesting a potential downside of 4.47%. Given Amkor Technology’s higher possible upside, analysts clearly believe Amkor Technology is more favorable than Ultratech.

Risk & Volatility

Amkor Technology has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Ultratech has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Amkor Technology 6.63% 12.95% 4.35%
Ultratech 5.17% 3.22% 2.83%

Valuation & Earnings

This table compares Amkor Technology and Ultratech’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Amkor Technology $4.01 billion 0.52 $866.26 million $1.11 7.83
Ultratech N/A N/A N/A $0.42 71.98

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

Insider and Institutional Ownership

38.8% of Amkor Technology shares are held by institutional investors. Comparatively, 92.7% of Ultratech shares are held by institutional investors. 58.1% of Amkor Technology shares are held by company insiders. Comparatively, 5.9% of Ultratech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Amkor Technology beats Ultratech on 8 of the 9 factors compared between the two stocks.

Amkor Technology Company Profile

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.

Ultratech Company Profile

Ultratech, Inc. (Ultratech) develops, manufactures and markets photolithography, laser thermal processing and inspection equipment. The Company operates through the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components segment. The Company serves manufacturers of semiconductor devices, including packaging processes and various nanotechnology components such as laser diodes, high-brightness light emitting diodes (HBLEDs) and micro-electro-mechanical systems (MEMS), as well as atomic layer deposition systems (ALD) for customers located throughout the world. It has operations in North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia.

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