Head-To-Head Analysis: ASML Holding N.V. (ASML) vs. Fortive Corporation (FTV)
ASML Holding N.V. (NASDAQ: ASML) and Fortive Corporation (NYSE:FTV) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
This table compares ASML Holding N.V. and Fortive Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ASML Holding N.V.||23.69%||18.48%||10.71%|
Valuation and Earnings
This table compares ASML Holding N.V. and Fortive Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ASML Holding N.V.||$9.10 billion||7.40||$3.19 billion||$4.57||34.24|
|Fortive Corporation||$6.36 billion||3.53||$1.49 billion||$2.54||25.48|
ASML Holding N.V. has higher revenue and earnings than Fortive Corporation. Fortive Corporation is trading at a lower price-to-earnings ratio than ASML Holding N.V., indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ASML Holding N.V. has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Fortive Corporation has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.
ASML Holding N.V. pays an annual dividend of $1.11 per share and has a dividend yield of 0.7%. Fortive Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. ASML Holding N.V. pays out 24.3% of its earnings in the form of a dividend. Fortive Corporation pays out 11.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of current ratings for ASML Holding N.V. and Fortive Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ASML Holding N.V.||0||7||10||0||2.59|
ASML Holding N.V. presently has a consensus target price of $160.67, indicating a potential upside of 2.68%. Fortive Corporation has a consensus target price of $60.90, indicating a potential downside of 5.92%. Given ASML Holding N.V.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe ASML Holding N.V. is more favorable than Fortive Corporation.
Insider & Institutional Ownership
16.1% of ASML Holding N.V. shares are owned by institutional investors. Comparatively, 78.7% of Fortive Corporation shares are owned by institutional investors. 12.1% of Fortive Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
ASML Holding N.V. beats Fortive Corporation on 11 of the 16 factors compared between the two stocks.
ASML Holding N.V. Company Profile
ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.
Fortive Corporation Company Profile
Fortive Corporation is a diversified industrial growth company. The Company designs, develops, manufactures and markets professional and engineered products, software and services for a range of end markets. The Company operates through two segments: Professional Instrumentation and Industrial Technologies. The Company’s brands operate in field instrumentation, transportation, sensing, product realization, automation and specialty, and franchise distribution markets. The Professional Instrumentation segment offers essential products, software and services used to create actionable intelligence by measuring and monitoring a range of physical parameters in industrial applications, including electrical current, radio frequency signals, distance, pressure and temperature. The Industrial Technologies segment offers critical technical equipment, components, software and services for manufacturing, repair and transportation markets around the world.
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