Amkor Technology (NASDAQ:AMKR – Get Free Report) and Nova (NASDAQ:NVMI – Get Free Report) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
Amkor Technology has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Nova has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.
Insider & Institutional Ownership
42.8% of Amkor Technology shares are owned by institutional investors. Comparatively, 83.0% of Nova shares are owned by institutional investors. 26.4% of Amkor Technology shares are owned by company insiders. Comparatively, 1.0% of Nova shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Amkor Technology | 6.17% | 9.88% | 5.40% |
| Nova | 29.21% | 21.77% | 12.56% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Amkor Technology and Nova, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amkor Technology | 0 | 7 | 4 | 0 | 2.36 |
| Nova | 0 | 2 | 9 | 0 | 2.82 |
Amkor Technology currently has a consensus target price of $67.38, suggesting a potential downside of 18.73%. Nova has a consensus target price of $518.22, suggesting a potential downside of 11.02%. Given Nova’s stronger consensus rating and higher possible upside, analysts clearly believe Nova is more favorable than Amkor Technology.
Valuation & Earnings
This table compares Amkor Technology and Nova”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amkor Technology | $7.07 billion | 2.91 | $373.89 million | $1.75 | 47.37 |
| Nova | $880.58 million | 21.02 | $259.22 million | $8.02 | 72.62 |
Amkor Technology has higher revenue and earnings than Nova. Amkor Technology is trading at a lower price-to-earnings ratio than Nova, indicating that it is currently the more affordable of the two stocks.
Summary
Nova beats Amkor Technology on 10 of the 14 factors compared between the two stocks.
About Amkor Technology
Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.
About Nova
Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging. The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers. Nova Ltd. was formerly known as Nova Measuring Instruments Ltd. and changed its name to Nova Ltd. in July 2021. Nova Ltd. was incorporated in 1993 and is headquartered in Rehovot, Israel.
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