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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Chipmos Technologies and PDF Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chipmos Technologies 0 0 0 0 N/A
PDF Solutions 0 2 1 0 2.33

PDF Solutions has a consensus price target of $23.33, suggesting a potential upside of 54.12%. Given PDF Solutions’ higher probable upside, analysts clearly believe PDF Solutions is more favorable than Chipmos Technologies.

Profitability

This table compares Chipmos Technologies and PDF Solutions’ 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%
PDF Solutions 5.29% 2.78% 2.49%

Dividends

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

Volatility & Risk

Chipmos Technologies has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, PDF Solutions has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Earnings and Valuation

This table compares Chipmos Technologies and PDF Solutions’ 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
PDF Solutions $104.27 million 4.69 $9.44 million $0.18 84.11

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

Insider and Institutional Ownership

23.1% of Chipmos Technologies shares are owned by institutional investors. Comparatively, 78.0% of PDF Solutions shares are owned by institutional investors. 16.2% of PDF Solutions 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.

Summary

PDF Solutions 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 PDF Solutions

PDF Solutions, Inc. is a provider of infrastructure technologies and services for integrated circuits (IC). The Company’s technologies and services focus on the IC manufacturing process life cycle. It operates in the segment of licensing and implementation of yield improvement solutions for integrated circuit manufacturers. The Company’s solutions combine software, test chips, an electrical wafer test system, methodologies and professional services. The Company has developed solutions for yield simulation, analysis, loss detection, and improvement. Its characterization vehicle infrastructure (CVi) enables customers to electrically characterize the manufacturing process, and establish fail-rate information needed to calibrate manufacturing yield models and prioritize yield improvement activities. Its Exensio YieldAware solution combines software and services to enable customers to collect and combine product test data and equipment signals during production.

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