Veeco Instruments (VECO) and Intersil (ISIL) Critical Contrast

Veeco Instruments (NASDAQ: VECO) and Intersil (NASDAQ:ISIL) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Valuation and Earnings

This table compares Veeco Instruments and Intersil’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veeco Instruments $332.45 million 2.50 -$122.21 million ($1.00) -17.20
Intersil N/A N/A N/A $0.35 N/A

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

Profitability

This table compares Veeco Instruments and Intersil’s 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%
Intersil 13.67% 7.83% 6.57%

Dividends

Intersil pays an annual dividend of $0.48 per share. Veeco Instruments does not pay a dividend. Intersil pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

100.0% of Veeco Instruments shares are held by institutional investors. Comparatively, 93.4% of Intersil shares are held by institutional investors. 2.9% of Veeco Instruments shares are held by company insiders. Comparatively, 1.6% of Intersil shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Veeco Instruments and Intersil, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeco Instruments 0 2 4 0 2.67
Intersil 0 1 0 0 2.00

Veeco Instruments presently has a consensus price target of $28.67, indicating a potential upside of 66.67%. Intersil has a consensus price target of $22.50, indicating a potential upside of Infinity. Given Intersil’s higher probable upside, analysts clearly believe Intersil is more favorable than Veeco Instruments.

Veeco Instruments Company Profile

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.

Intersil Company Profile

Intersil Corporation is engaged in designing and developing power management and precision analog integrated circuits (IC). The Company provides power management and precision analog technology for applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. It supplies a range of power IC solutions for battery management, processor power management and display power management, including power regulators, converters and controllers, as well as integrated power modules. It also provides precision analog components, such as amplifiers and buffers, proximity and light sensors, data converters, optoelectronics, video decoders and interface products. It is also a supplier of radiation-hardened devices to the military and aerospace industries. It operates in approximately two market categories, including industrial and infrastructure, and computing and consumer.

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