Comparing Amkor Technology (AMKR) and Kulicke and Soffa Industries (KLIC)

Amkor Technology (NASDAQ: AMKR) and Kulicke and Soffa Industries (NASDAQ:KLIC) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares Amkor Technology and Kulicke and Soffa Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Amkor Technology $4.01 billion 0.59 $866.26 million $1.11 8.92
Kulicke and Soffa Industries $738.99 million 1.91 $125.75 million $1.20 16.58

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

Insider & Institutional Ownership

38.7% of Amkor Technology shares are held by institutional investors. Comparatively, 84.9% of Kulicke and Soffa Industries shares are held by institutional investors. 58.1% of Amkor Technology shares are held by company insiders. Comparatively, 1.0% of Kulicke and Soffa Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Amkor Technology 6.63% 12.95% 4.35%
Kulicke and Soffa Industries 11.61% 11.88% 9.53%

Analyst Recommendations

This is a breakdown of recent ratings for Amkor Technology and Kulicke and Soffa Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amkor Technology 0 1 0 0 2.00
Kulicke and Soffa Industries 0 1 1 0 2.50

Amkor Technology presently has a consensus target price of $10.50, indicating a potential upside of 6.06%. Kulicke and Soffa Industries has a consensus target price of $31.00, indicating a potential upside of 55.78%. Given Kulicke and Soffa Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Kulicke and Soffa Industries is more favorable than Amkor Technology.

Volatility and Risk

Amkor Technology has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Summary

Kulicke and Soffa Industries beats Amkor Technology on 9 of the 14 factors compared between the two stocks.

Amkor Technology Company Profile

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.

Kulicke and Soffa Industries Company Profile

Kulicke and Soffa Industries, Inc. designs, manufactures and sells capital equipment and expendable tools, as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company supplies a range of bonding equipment. The Company operates through two segments: Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging and surface mount technology solutions. The Expendable Tools segment manufactures and sells expendable tools for a range of semiconductor packaging applications. It offers capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes and power modules. Its customers primarily consist of semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers and automotive electronics suppliers.

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