Analyzing Kulicke and Soffa Industries (NASDAQ:KLIC) and Resonant (NASDAQ:RESN)

Resonant (NASDAQ:RESN) and Kulicke and Soffa Industries (NASDAQ:KLIC) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Volatility and Risk

Resonant has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Resonant and Kulicke and Soffa Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Resonant $520,000.00 173.19 -$24.82 million ($0.98) -3.09
Kulicke and Soffa Industries $889.12 million 1.60 $56.67 million $2.43 9.26

Kulicke and Soffa Industries has higher revenue and earnings than Resonant. Resonant 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.

Institutional and Insider Ownership

10.7% of Resonant shares are held by institutional investors. Comparatively, 92.1% of Kulicke and Soffa Industries shares are held by institutional investors. 26.6% of Resonant shares are held by company insiders. Comparatively, 1.8% 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 is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Resonant -6,314.32% -137.94% -113.06%
Kulicke and Soffa Industries 5.96% 6.21% 4.60%

Dividends

Kulicke and Soffa Industries pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Resonant does not pay a dividend. Kulicke and Soffa Industries pays out 19.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Resonant and Kulicke and Soffa Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Resonant 0 0 5 0 3.00
Kulicke and Soffa Industries 0 2 2 0 2.50

Resonant currently has a consensus target price of $5.60, indicating a potential upside of 84.82%. Kulicke and Soffa Industries has a consensus target price of $26.50, indicating a potential upside of 17.83%. Given Resonant’s stronger consensus rating and higher probable upside, analysts plainly believe Resonant is more favorable than Kulicke and Soffa Industries.

Summary

Kulicke and Soffa Industries beats Resonant on 9 of the 16 factors compared between the two stocks.

Resonant Company Profile

Resonant Inc., a late-stage development company, designs and develops filter designs for radio frequency (RF) front-ends used in the mobile device industry in the United States. It uses Infinite Synthesized Networks technology, a software platform that is used to configure and connect resonators, the building blocks of RF filters. The company develops a series of single-band designs for frequency bands; and multiplexer filter designs for two or more bands to address the carrier aggregation, as well as filter designs to replace various filters and associated componentry for various bands. Resonant Inc. was founded in 2012 and is headquartered in Goleta, California.

Kulicke and Soffa Industries Company Profile

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools to assemble semiconductor devices. It operates in two segments, Capital Equipment, and Aftermarket Products and Services (APS). The Capital Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging, and electronic assembly solutions. The APS segment manufactures and sells various tools for a range of semiconductor packaging applications, including capillaries, which are expendable tools used in ball bonders; dicing blades that are expendable tools for semiconductor manufacturers to cut silicon wafers into individual semiconductor die or to cut packaged semiconductor units into individual units; and bonding wedges, which are expendable tools used in heavy wire wedge bonders. It also provides spare parts, equipment repair, maintenance and servicing, training, refurbishment, and equipment upgradation services. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.

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