Contrasting ChipMOS Technologies (IMOS) & Entegris (NASDAQ:ENTG)

Entegris (NASDAQ: ENTG) and ChipMOS Technologies (NASDAQ:IMOS) 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, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Dividends

Entegris pays an annual dividend of $0.14 per share and has a dividend yield of 0.4%. ChipMOS Technologies pays an annual dividend of $0.46 per share and has a dividend yield of 2.8%. Entegris pays out 23.7% of its earnings in the form of a dividend. ChipMOS Technologies pays out 17.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ChipMOS Technologies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Entegris and ChipMOS Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entegris $1.34 billion 3.40 $85.07 million $0.59 54.75
ChipMOS Technologies $567.50 million 1.25 $43.24 million $2.64 6.27

Entegris has higher revenue and earnings than ChipMOS Technologies. ChipMOS Technologies 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 ChipMOS Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entegris 6.34% 21.01% 11.95%
ChipMOS Technologies 19.18% 9.42% 4.96%

Analyst Ratings

This is a summary of recent recommendations for Entegris and ChipMOS Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entegris 0 2 8 1 2.91
ChipMOS Technologies 0 0 0 0 N/A

Entegris currently has a consensus target price of $32.65, suggesting a potential upside of 1.08%. Given Entegris’ higher probable upside, equities analysts clearly believe Entegris is more favorable than ChipMOS Technologies.

Volatility & Risk

Entegris has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, ChipMOS Technologies has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Insider & Institutional Ownership

95.7% of Entegris shares are held by institutional investors. Comparatively, 16.4% of ChipMOS Technologies shares are held by institutional investors. 1.5% of Entegris shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Entegris beats ChipMOS Technologies on 12 of the 16 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.

ChipMOS Technologies Company Profile

ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.

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