Critical Analysis: Entegris (ENTG) vs. Amkor Technology (AMKR)

Entegris (NASDAQ: ENTG) and Amkor Technology (NASDAQ:AMKR) are both mid-cap semiconductor equipment & testing – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Entegris has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Entegris and Amkor Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entegris 0 3 6 1 2.80
Amkor Technology 0 1 0 0 2.00

Entegris presently has a consensus price target of $31.78, indicating a potential upside of 1.69%. Amkor Technology has a consensus price target of $10.50, indicating a potential downside of 3.58%. Given Entegris’ stronger consensus rating and higher probable upside, equities analysts clearly believe Entegris is more favorable than Amkor Technology.

Dividends

Entegris pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. Amkor Technology does not pay a dividend. Entegris pays out 7.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Entegris and Amkor Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Entegris $1.18 billion 3.76 $97.14 million $0.97 32.22
Amkor Technology $3.89 billion 0.67 $164.19 million $1.09 9.99

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

Profitability

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

Net Margins Return on Equity Return on Assets
Entegris 10.73% 18.82% 10.52%
Amkor Technology 6.41% 12.04% 4.18%

Insider and Institutional Ownership

95.3% of Entegris shares are held by institutional investors. Comparatively, 38.1% of Amkor Technology shares are held by institutional investors. 1.7% of Entegris shares are held by company insiders. Comparatively, 58.1% of Amkor Technology 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.

Summary

Entegris beats Amkor Technology on 11 of the 17 factors compared between the two stocks.

Entegris Company Profile

Entegris, Inc. is a global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. The Company operates in three business segments: Specialty Chemicals and Engineered Materials (SCEM), Advanced Materials Handling (AMH) and Microcontamination Control (MC). The SCEM segment provides process chemistries, gases, materials and delivery systems to support semiconductor and other manufacturing processes. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a set of applications in the semiconductor industry and other high-technology industries. AMH offers wafer solutions, chemical containers and fluidics. MC offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

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.

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