Axcelis Technologies (NASDAQ: ACLS) and Amkor Technology (NASDAQ:AMKR) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares Axcelis Technologies and Amkor Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axcelis Technologies $266.98 million 3.65 $11.00 million $1.19 26.09
Amkor Technology $3.89 billion 0.64 $164.19 million $1.09 9.61

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

Profitability

This table compares Axcelis Technologies and Amkor Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axcelis Technologies 10.80% 16.37% 10.94%
Amkor Technology 6.41% 12.04% 4.18%

Insider and Institutional Ownership

78.0% of Axcelis Technologies shares are owned by institutional investors. Comparatively, 39.4% of Amkor Technology shares are owned by institutional investors. 5.7% of Axcelis Technologies shares are owned by company insiders. Comparatively, 58.1% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Axcelis Technologies has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Axcelis Technologies and Amkor Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axcelis Technologies 0 2 3 0 2.60
Amkor Technology 0 1 0 0 2.00

Axcelis Technologies presently has a consensus target price of $30.40, suggesting a potential downside of 2.09%. Amkor Technology has a consensus target price of $10.50, suggesting a potential upside of 0.19%. Given Amkor Technology’s higher probable upside, analysts clearly believe Amkor Technology is more favorable than Axcelis Technologies.

Summary

Axcelis Technologies beats Amkor Technology on 9 of the 14 factors compared between the two stocks.

About Axcelis Technologies

Axcelis Technologies, Inc. designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. The Company also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services and customer training. The Company offers a complete line of high energy, high current and medium current implanters for all application requirements. The Company’s Purion XE high energy system combines its radio frequency (RF) Linac high energy, spot beam technology with the Purion platform. The Company also offers the Purion M medium current system. The Company’s Purion M systems also offer differentiation for specialty applications, such as hot silicon carbide. The Company’s Purion H high current system is extendable into ultra-low energy applications to satisfy future process requirements, including leakage current performance.

About Amkor Technology

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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