Financial Analysis: Xcerra Corporation (XCRA) & Amkor Technology (AMKR)
Xcerra Corporation (NASDAQ: XCRA) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.
Risk & Volatility
Xcerra Corporation has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500.
This table compares Xcerra Corporation and Amkor Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
86.3% of Xcerra Corporation shares are held by institutional investors. Comparatively, 38.7% of Amkor Technology shares are held by institutional investors. 2.6% of Xcerra Corporation shares are held by insiders. Comparatively, 58.1% of Amkor Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Xcerra Corporation and Amkor Technology’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Xcerra Corporation||$355.08 million||1.49||$23.08 million||$0.42||23.24|
|Amkor Technology||$4.01 billion||0.53||$866.26 million||$1.11||8.02|
Amkor Technology has higher revenue and earnings than Xcerra Corporation. Amkor Technology is trading at a lower price-to-earnings ratio than Xcerra Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Xcerra Corporation and Amkor Technology, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xcerra Corporation currently has a consensus target price of $10.25, indicating a potential upside of 5.02%. Amkor Technology has a consensus target price of $10.50, indicating a potential upside of 17.98%. Given Amkor Technology’s higher possible upside, analysts clearly believe Amkor Technology is more favorable than Xcerra Corporation.
Amkor Technology beats Xcerra Corporation on 8 of the 12 factors compared between the two stocks.
Xcerra Corporation Company Profile
Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.
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.
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