Chipmos Technologies (NASDAQ: IMOS) and Camtek (NASDAQ:CAMT) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider & Institutional Ownership

23.1% of Chipmos Technologies shares are held by institutional investors. Comparatively, 18.2% of Camtek shares are held by institutional investors. 79.4% of Camtek shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Chipmos Technologies and Camtek’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chipmos Technologies N/A N/A N/A $2.52 6.69
Camtek $116.68 million 1.30 $13.85 million $0.08 53.75

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

Profitability

This table compares Chipmos Technologies and Camtek’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chipmos Technologies 19.20% 9.74% 5.09%
Camtek 2.56% 15.32% 10.10%

Analyst Ratings

This is a breakdown of current recommendations for Chipmos Technologies and Camtek, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chipmos Technologies 0 0 0 0 N/A
Camtek 0 1 1 0 2.50

Camtek has a consensus price target of $7.00, suggesting a potential upside of 62.79%. Given Camtek’s higher possible upside, analysts clearly believe Camtek is more favorable than Chipmos Technologies.

Dividends

Chipmos Technologies pays an annual dividend of $1.49 per share and has a dividend yield of 8.8%. Camtek does not pay a dividend. Chipmos Technologies pays out 59.1% of its earnings in the form of a dividend.

Risk and Volatility

Chipmos Technologies has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Camtek has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Summary

Camtek beats Chipmos Technologies on 8 of the 13 factors compared between the two stocks.

About Chipmos Technologies

ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.

About Camtek

Camtek Ltd. provides automated and technological solutions for production processes and products yield, enabling and supporting customers’ technologies in the semiconductor fabrication and printed circuit board (PCB) industries. The Company designs, develops, manufactures and markets products mainly based on two core technologies: automated optical inspection (AOI) and functional ink technology (FIT). The Company’s AOI systems are computerized systems that optically inspect various types of electronic product components for defects caused during the manufacturing process. Its AOI systems are used for both production processes and for manufacturers in the semiconductor fabrication industry, as well as the printed circuit board industry. The Company’s AOI products incorporate image processing software and algorithms, as well as electro-optics and precision mechanics. In addition, the Company’s AOI systems use technology to handle a range of inspection and verification needs.

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