Mattson Technology (NASDAQ: MTSN) and Kulicke and Soffa Industries (NASDAQ:KLIC) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Risk & Volatility

Mattson Technology has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

85.8% of Kulicke and Soffa Industries shares are held by institutional investors. 1.0% of Kulicke and Soffa Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Mattson Technology and Kulicke and Soffa Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mattson Technology -13.95% -18.69% -13.50%
Kulicke and Soffa Industries 13.85% 14.54% 11.52%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Mattson Technology and Kulicke and Soffa Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mattson Technology 0 0 0 0 N/A
Kulicke and Soffa Industries 1 0 2 0 2.33

Kulicke and Soffa Industries has a consensus target price of $29.17, indicating a potential upside of 18.32%. Given Kulicke and Soffa Industries’ higher probable upside, analysts plainly believe Kulicke and Soffa Industries is more favorable than Mattson Technology.

Earnings and Valuation

This table compares Mattson Technology and Kulicke and Soffa Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mattson Technology N/A N/A N/A $0.13 27.69
Kulicke and Soffa Industries $809.00 million 2.15 $112.01 million $1.56 15.80

Kulicke and Soffa Industries has higher revenue and earnings than Mattson Technology. Kulicke and Soffa Industries is trading at a lower price-to-earnings ratio than Mattson Technology, indicating that it is currently the more affordable of the two stocks.

Summary

Kulicke and Soffa Industries beats Mattson Technology on 9 of the 10 factors compared between the two stocks.

About Mattson Technology

Mattson Technology, Inc. is a United States-based company, which provides a global semiconductor wafer processing equipment. The Company is engaged in designing, manufacturing, marketing and supporting semiconductor wafer processing equipment, which uses in the fabrication of integrated circuits. It operates in four product sectors: dry strip, etch, conventional rapid thermal processing and millisecond anneal. It is a supplier of dry strip and rapid thermal processing (RTP) equipment for processing to semiconductor manufactures across the world for the fabrication of various devices. It offers its technology to provide capital equipment that deliver processing capability for integrated circuit fabrication to its customers. Its product support offerings include product specific upgrade kits, labor and parts, labor bank program and process engineering services. Its designing and manufacturing centers are located in the United States, Canada and Germany.

About Kulicke and Soffa Industries

Kulicke and Soffa Industries, Inc. designs, manufactures and sells capital equipment and expendable tools, as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company supplies a range of bonding equipment. The Company operates through two segments: Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging and surface mount technology solutions. The Expendable Tools segment manufactures and sells expendable tools for a range of semiconductor packaging applications. It offers capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes and power modules. Its customers primarily consist of semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers and automotive electronics suppliers.

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