Nanometrics (NANO) vs. ASML (ASML) Financial Comparison

Nanometrics (NASDAQ: NANO) and ASML (NASDAQ:ASML) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Earnings and Valuation

This table compares Nanometrics and ASML’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nanometrics $221.13 million 2.67 $44.03 million $1.79 12.90
ASML $10.23 billion 7.85 $2.39 billion $6.12 30.50

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

Profitability

This table compares Nanometrics and ASML’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nanometrics 19.23% 10.26% 8.68%
ASML 24.28% 21.16% 12.43%

Risk and Volatility

Nanometrics has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, ASML has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Dividends

ASML pays an annual dividend of $1.11 per share and has a dividend yield of 0.6%. Nanometrics does not pay a dividend. ASML pays out 18.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Nanometrics and ASML, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nanometrics 0 0 2 0 3.00
ASML 0 3 10 0 2.77

Nanometrics presently has a consensus price target of $32.50, suggesting a potential upside of 40.75%. ASML has a consensus price target of $191.00, suggesting a potential upside of 2.31%. Given Nanometrics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Nanometrics is more favorable than ASML.

Institutional & Insider Ownership

83.1% of Nanometrics shares are owned by institutional investors. Comparatively, 16.6% of ASML shares are owned by institutional investors. 6.7% of Nanometrics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

ASML beats Nanometrics on 10 of the 16 factors compared between the two stocks.

About Nanometrics

Nanometrics Incorporated is a provider of process control metrology and inspection systems used primarily in the fabrication of semiconductors and other solid-state devices, including sensors, optoelectronic devices, high-brightness (HB) light emitting diodes (LEDs), discretes and data storages components. The Company’s automated and integrated metrology systems measure critical dimensions, device structures, topography and various thin film properties, including three-dimensional features and film thickness, as well as optical, electrical and material properties. The Company’s process control solutions are deployed throughout the fabrication process, from front-end-of-line substrate manufacturing, to production of semiconductors and other devices, to three-dimensional wafer-level packaging applications. The Company’s automated systems primarily consist of automated metrology systems that are employed in semiconductor production environments.

About ASML

ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.

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