Veeco Instruments (VECO) & Applied Micro Circuits (AMCC) Financial Review

Veeco Instruments (NASDAQ: VECO) and Applied Micro Circuits (NASDAQ:AMCC) are both semiconductors – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Institutional & Insider Ownership

98.9% of Veeco Instruments shares are held by institutional investors. Comparatively, 73.3% of Applied Micro Circuits shares are held by institutional investors. 2.9% of Veeco Instruments shares are held by insiders. Comparatively, 12.4% of Applied Micro Circuits shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Veeco Instruments and Applied Micro Circuits’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veeco Instruments -10.16% -0.73% -0.47%
Applied Micro Circuits -11.11% -16.63% -13.04%

Earnings and Valuation

This table compares Veeco Instruments and Applied Micro Circuits’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veeco Instruments $332.45 million 2.35 -$122.21 million ($0.99) -16.31
Applied Micro Circuits N/A N/A N/A ($0.38) -22.24

Applied Micro Circuits has lower revenue, but higher earnings than Veeco Instruments. Applied Micro Circuits is trading at a lower price-to-earnings ratio than Veeco Instruments, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Veeco Instruments and Applied Micro Circuits, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeco Instruments 0 3 5 0 2.63
Applied Micro Circuits 0 0 0 0 N/A

Veeco Instruments presently has a consensus price target of $28.50, suggesting a potential upside of 76.47%. Given Veeco Instruments’ higher probable upside, research analysts clearly believe Veeco Instruments is more favorable than Applied Micro Circuits.

Summary

Veeco Instruments beats Applied Micro Circuits on 7 of the 9 factors compared between the two stocks.

About Veeco Instruments

Veeco Instruments Inc. is engaged in the design, development, manufacture and support of thin film process equipment, primarily sold to make electronic devices. The Company’s geographical segments include the United States; China; Europe, Middle East and Africa (EMEA), and Rest of World (ROW). The Company’s portfolio of technology solutions focus on market areas, including Lighting, Display & Power Electronics; Advanced Packaging, micro-electromechanical systems (MEMS) & radio frequency (RF); Scientific & Industrial, and Data Storage. The Company’s equipment is used to make electronic devices, including light emitting diodes (LEDs), MEMS, wireless devices, power electronics, hard disk drives (HDDs) and semiconductor devices. The Company’s System products include Metal Organic Chemical Vapor Deposition Systems, Precision Surface Processing Systems, Ion Beam Etch and Deposition Systems, Molecular Beam Epitaxy Systems, and Other Deposition and Industrial Products.

About Applied Micro Circuits

Applied Micro Circuits Corporation (AMCC) provides silicon solutions for cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. The Company’s products serve Computing and Connectivity markets. Its Computing products include the X-Gene family of server processors, based on the ARMv8 64-bit Instruction Set Architecture (ISA), which target mainstream cloud and data center infrastructure, including hyperscale, telco, enterprise and high performance computing. It also offers embedded computing products, which include HeliX family of processors, based on the ARM 64-bit ISA and its PowerPC products, based on Power Architecture. Its embedded Computing products are deployed in various applications, including networking and telecom, enterprise storage and industrial applications. The Connectivity business includes X-Weave family of products for service providers and public cloud, private cloud and enterprise data centers.

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