Comparing NXP Semiconductors (NASDAQ:NXPI) & Kulicke and Soffa Industries (NASDAQ:KLIC)

NXP Semiconductors (NASDAQ:NXPIGet Rating) and Kulicke and Soffa Industries (NASDAQ:KLICGet Rating) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Dividends

NXP Semiconductors pays an annual dividend of $4.06 per share and has a dividend yield of 2.3%. Kulicke and Soffa Industries pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. NXP Semiconductors pays out 38.4% of its earnings in the form of a dividend. Kulicke and Soffa Industries pays out 14.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NXP Semiconductors has raised its dividend for 3 consecutive years and Kulicke and Soffa Industries has raised its dividend for 3 consecutive years.

Volatility & Risk

NXP Semiconductors has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for NXP Semiconductors and Kulicke and Soffa Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NXP Semiconductors 0 10 8 1 2.53
Kulicke and Soffa Industries 0 1 2 0 2.67

NXP Semiconductors currently has a consensus target price of $188.95, suggesting a potential upside of 6.58%. Kulicke and Soffa Industries has a consensus target price of $61.67, suggesting a potential upside of 17.48%. Given Kulicke and Soffa Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Kulicke and Soffa Industries is more favorable than NXP Semiconductors.

Institutional and Insider Ownership

88.7% of NXP Semiconductors shares are owned by institutional investors. Comparatively, 99.0% of Kulicke and Soffa Industries shares are owned by institutional investors. 0.1% of NXP Semiconductors shares are owned by insiders. Comparatively, 3.1% of Kulicke and Soffa Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares NXP Semiconductors and Kulicke and Soffa Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NXP Semiconductors $13.21 billion 3.48 $2.79 billion $10.56 16.79
Kulicke and Soffa Industries $1.50 billion 1.98 $433.55 million $5.20 10.09

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

Profitability

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

Net Margins Return on Equity Return on Assets
NXP Semiconductors 21.11% 52.47% 16.97%
Kulicke and Soffa Industries 25.80% 28.72% 21.41%

Summary

NXP Semiconductors beats Kulicke and Soffa Industries on 10 of the 17 factors compared between the two stocks.

About NXP Semiconductors

(Get Rating)

NXP Semiconductors NV is a holding company, which engages in the provision of semiconductor solutions. Its portfolio includes intellectual property, deep application knowledge, process technology and manufacturing expertise in the domains of cryptography-security, high-speed interface, radio frequency (RF), mixed-signal analog-digital, power management, digital signal processing, and embedded system design. Its product solutions are used in a wide range of end market applications including: automotive, industrial and Internet of Things (IoT), mobile, and communication infrastructure. It operates through the following geographical segments: China, Netherlands, United States, Singapore, Germany, Japan, South Korea, Malaysia, and Other Countries. The company was founded on August 2, 2006, and is headquartered in Eindhoven, the Netherlands.

About Kulicke and Soffa Industries

(Get Rating)

Kulicke & Soffa Industries, Inc. engages in the design, manufacture, and sale of capital equipment and tools used to assemble semiconductor devices, including integrated circuits (“ICs“), high and low powered discrete devices, light-emitting diodes (“LEDs“), and power modules. The firm operates through the Capital Equipment, and Aftermarket Products and Services (APS) segments. The Capital Equipment segment is affected by the industry’s internal cyclical and seasonal dynamics in addition to broader macroeconomic factors that can positively or negatively affect company financial performance. The APS segment is more directly tied to semiconductor unit consumption rather than capacity requirements and production capability improvements. The company was founded by Frederick W. Kulicke and Albert Soffa in 1951 and is headquartered in Fort Washington, PA.

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