Comparing Advanced Semiconductor Engnrng (NYSE:ASX) and Atmel (ATML)

Atmel (NASDAQ: ATML) and Advanced Semiconductor Engnrng (NYSE:ASX) are both mid-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Valuation and Earnings

This table compares Atmel and Advanced Semiconductor Engnrng’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atmel N/A N/A N/A $0.06 135.67
Advanced Semiconductor Engnrng $8.53 billion 1.29 $659.30 million $0.46 14.48

Advanced Semiconductor Engnrng has higher revenue and earnings than Atmel. Advanced Semiconductor Engnrng is trading at a lower price-to-earnings ratio than Atmel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Atmel and Advanced Semiconductor Engnrng’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atmel 1.81% 2.18% 1.48%
Advanced Semiconductor Engnrng 8.74% 13.80% 7.00%

Dividends

Atmel pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Advanced Semiconductor Engnrng pays an annual dividend of $0.16 per share and has a dividend yield of 2.4%. Atmel pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Advanced Semiconductor Engnrng pays out 34.8% of its earnings in the form of a dividend. Advanced Semiconductor Engnrng is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and target prices for Atmel and Advanced Semiconductor Engnrng, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atmel 0 0 0 0 N/A
Advanced Semiconductor Engnrng 0 0 0 0 N/A

Volatility & Risk

Atmel has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Advanced Semiconductor Engnrng has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

5.8% of Advanced Semiconductor Engnrng shares are owned by institutional investors. 22.9% of Advanced Semiconductor Engnrng shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Advanced Semiconductor Engnrng beats Atmel on 9 of the 11 factors compared between the two stocks.

Atmel Company Profile

Atmel Corporation supplies microcontrollers. The Company operates through four segments: Microcontroller, Nonvolatile Memory, Automotive and Multi-Market and Other. The Microcontroller segment includes its microcontroller and microprocessor families; AVR 8-bit and 32-bit products; Atmel SMART ARM-based products; designated commercial wireless products, including low power radio and System-on-a-chip products; optimized products for smart energy, touch button, and mobile sensor hub and Light Emitting Diode (LED) lighting applications, and maXTouch capacitive touch product families. The Nonvolatile Memory segment includes electrically erasable programmable read-only, erasable programmable read-only memory devices and secure cryptographic products. The Automotive segment includes devices for automotive electronics, including products using radio frequency technology. The Multi-Market and Other segment includes application specific and standard products for aerospace applications.

Advanced Semiconductor Engnrng Company Profile

Advanced Semiconductor Engineering, Inc. is a provider of semiconductor packaging and testing services. The Company offers a range of semiconductors packaging, testing and electronic manufacturing services (EMS). The Company’s segments include Packaging, Testing, EMS and Others. The Company provides services in packaging bare semiconductors into finished semiconductors with a range of electrical and thermal characteristics, as well as testing services, including front-end engineering testing, wafer probing and final testing services. It also sells goods from EMS. The Company engages in other activities, such as substrate production and real estate business. It provides integrated solutions for EMS in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis.

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