Amkor Technology (NASDAQ:AMKR) and MKS Instruments (NASDAQ:MKSI) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Insider and Institutional Ownership
37.6% of Amkor Technology shares are held by institutional investors. Comparatively, 94.0% of MKS Instruments shares are held by institutional investors. 59.3% of Amkor Technology shares are held by company insiders. Comparatively, 1.1% of MKS Instruments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Amkor Technology and MKS Instruments' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Amkor Technology | 6.39% | 14.81% | 6.29% |
MKS Instruments | 12.78% | 16.49% | 9.74% |
Dividends
Amkor Technology pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. MKS Instruments pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. Amkor Technology pays out 28.6% of its earnings in the form of a dividend. MKS Instruments pays out 17.7% 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. Amkor Technology has increased its dividend for 1 consecutive years and MKS Instruments has increased its dividend for 1 consecutive years.
Valuation and Earnings
This table compares Amkor Technology and MKS Instruments' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Amkor Technology | $4.05 billion | 1.43 | $120.89 million | $0.56 | 42.66 |
MKS Instruments | $1.90 billion | 4.79 | $140.39 million | $4.52 | 36.48 |
MKS Instruments has lower revenue, but higher earnings than Amkor Technology. MKS Instruments is trading at a lower price-to-earnings ratio than Amkor Technology, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Amkor Technology and MKS Instruments, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Amkor Technology | 1 | 1 | 2 | 0 | 2.25 |
MKS Instruments | 0 | 2 | 8 | 0 | 2.80 |
Amkor Technology currently has a consensus target price of $15.25, suggesting a potential downside of 36.17%. MKS Instruments has a consensus target price of $180.00, suggesting a potential upside of 9.16%. Given MKS Instruments' stronger consensus rating and higher probable upside, analysts plainly believe MKS Instruments is more favorable than Amkor Technology.
Volatility & Risk
Amkor Technology has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, MKS Instruments has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Summary
MKS Instruments beats Amkor Technology on 12 of the 16 factors compared between the two stocks.