Amkor Technology (NASDAQ: AMKR) and Fortive Corporation (NYSE:FTV) are both mid-cap semiconductor equipment & testing – nec companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Volatility & Risk
Amkor Technology has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500. Comparatively, Fortive Corporation has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.
Fortive Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Amkor Technology does not pay a dividend. Fortive Corporation pays out 10.6% of its earnings in the form of a dividend.
This table compares Amkor Technology and Fortive Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
38.1% of Amkor Technology shares are owned by institutional investors. Comparatively, 79.1% of Fortive Corporation shares are owned by institutional investors. 58.1% of Amkor Technology shares are owned by insiders. Comparatively, 12.1% of Fortive Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Amkor Technology and Fortive Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Amkor Technology||$3.89 billion||0.68||$164.19 million||$1.09||10.09|
|Fortive Corporation||$6.22 billion||4.05||$872.30 million||$2.65||27.40|
Fortive Corporation has higher revenue and earnings than Amkor Technology. Amkor Technology is trading at a lower price-to-earnings ratio than Fortive Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Amkor Technology and Fortive Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amkor Technology presently has a consensus price target of $10.50, suggesting a potential downside of 4.55%. Fortive Corporation has a consensus price target of $68.11, suggesting a potential downside of 6.18%. Given Amkor Technology’s higher probable upside, analysts plainly believe Amkor Technology is more favorable than Fortive Corporation.
Fortive Corporation beats Amkor Technology on 12 of the 16 factors compared between the two stocks.
About Amkor Technology
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.
About Fortive Corporation
Fortive Corporation is a diversified industrial growth company. The Company designs, develops, manufactures and markets professional and engineered products, software and services for a range of end markets. The Company operates through two segments: Professional Instrumentation and Industrial Technologies. The Company’s brands operate in field instrumentation, transportation, sensing, product realization, automation and specialty, and franchise distribution markets. The Professional Instrumentation segment offers essential products, software and services used to create actionable intelligence by measuring and monitoring a range of physical parameters in industrial applications, including electrical current, radio frequency signals, distance, pressure and temperature. The Industrial Technologies segment offers critical technical equipment, components, software and services for manufacturing, repair and transportation markets around the world.
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