Amkor Technology (NASDAQ:AMKR) and Acacia Communications (NASDAQ:ACIA) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
37.7% of Amkor Technology shares are owned by institutional investors. Comparatively, 78.5% of Acacia Communications shares are owned by institutional investors. 59.6% of Amkor Technology shares are owned by company insiders. Comparatively, 9.3% of Acacia Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Amkor Technology and Acacia Communications’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Amkor Technology||$4.32 billion||0.71||$127.09 million||$0.53||24.13|
|Acacia Communications||$339.89 million||8.07||$4.92 million||$0.15||442.87|
Amkor Technology has higher revenue and earnings than Acacia Communications. Amkor Technology is trading at a lower price-to-earnings ratio than Acacia Communications, indicating that it is currently the more affordable of the two stocks.
This table compares Amkor Technology and Acacia Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Amkor Technology has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Acacia Communications has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
This is a summary of recent ratings for Amkor Technology and Acacia Communications, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amkor Technology presently has a consensus target price of $13.50, suggesting a potential upside of 5.55%. Acacia Communications has a consensus target price of $58.64, suggesting a potential downside of 11.73%. Given Amkor Technology’s stronger consensus rating and higher probable upside, research analysts plainly believe Amkor Technology is more favorable than Acacia Communications.
Amkor Technology Company Profile
Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. The company offers turnkey packaging and test services, including semiconductor wafer bumps, wafer probes, wafer back-grinds, package design, packaging, and test and drop shipment services. Its packages employ wirebond, flip chip, copper clip, and other interconnect technologies. The company also provides semiconductor testing services, such as wafer and final test services; flip chip scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory, and as applications processors in mobile devices; and flip chip ball grid array products for various networking, storage, computing, and consumer applications. In addition, it offers wafer-level CSP packages used in power management, transceivers, sensors, wireless charging, codecs, and specialty silicon; Wafer-level fan-out packages used in ICs; and silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure. Further, the company provides lead frame packages that are used in electronic devices for low to medium pin count applications; substrate-based wirebond packages, which are used to connect a die to a substrate; micro-electro-mechanical systems (MEMS) packages that are miniaturized mechanical and electro-mechanical devices; and advanced system-in-package modules, which are used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid state drives. It primarily serves integrated device manufacturers, fabless semiconductor companies, and contract foundries. Amkor Technology, Inc. was founded in 1968 and is headquartered in Tempe, Arizona.
Acacia Communications Company Profile
Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the United States, China, Germany, Thailand, and internationally. The company offers embedded and pluggable module products consisting of optical interconnect modules with transmission speeds ranging from 100 to 1,200 gigabits per second for use in long-haul, metro, and inter-data center markets. It also provides semiconductor products, such as low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into embedded and pluggable modules. The company sells its products through a direct sales force to network equipment manufacturers, network operators, and cloud service providers. Acacia Communications, Inc. was founded in 2009 and is headquartered in Maynard, Massachusetts.
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