Reviewing Soitec (OTCMKTS:SLOIF) & Amkor Technology (NASDAQ:AMKR)

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

Insider and Institutional Ownership

42.8% of Amkor Technology shares are owned by institutional investors. 26.9% of Amkor Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Amkor Technology and Soitec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amkor Technology	0	8	4	0	2.33
Soitec	1	0	0	0	1.00

Amkor Technology currently has a consensus target price of $29.63, suggesting a potential downside of 32.56%. Given Amkor Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Amkor Technology is more favorable than Soitec.

Earnings and Valuation

This table compares Amkor Technology and Soitec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amkor Technology	$6.32 billion	1.72	$354.01 million	$1.25	35.14
Soitec	$937.30 million	1.19	$98.66 million	N/A	N/A

Amkor Technology has higher revenue and earnings than Soitec.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amkor Technology	4.77%	7.26%	4.14%
Soitec	N/A	N/A	N/A

Volatility & Risk

Amkor Technology has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Soitec has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Summary

Amkor Technology beats Soitec on 12 of the 12 factors compared between the two stocks.

About Amkor Technology

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules 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. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.

About Soitec

Soitec SA designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It provides CONNECT Radio Frequency Silicon-on-Insulator (RF-SOI) for smartphone front-end modules; CONNECT Piezoelectric-on-Insulator RF filters for smartphone; and CONNECT RF gallium nitride for 5g infrastructure base stations and smartphones, as well as CONNECT Fully Depleted Silicon-On-Insulator (FD-SOI). The company also offers Auto Power-SOI product for automotive and industrial markets; Auto Smartsic for green mobility; and AUTO POWER-allium nitride for power efficiency, as well as AUTO FD-SOI for automotive radar and processors. In addition, it provides Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Smart FD-SOI for ultra low power, energy efficient, and body biasing; smart partially depleted (PD) -SOI for high-performance computing markets. Soitec SA was incorporated in 1992 and is headquartered in Bernin, France.