ASML (NASDAQ:ASML – Get Free Report) and Advanced Energy Industries (NASDAQ:AEIS – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Risk & Volatility
ASML has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Dividends
ASML pays an annual dividend of $7.11 per share and has a dividend yield of 0.9%. Advanced Energy Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. ASML pays out 30.0% of its earnings in the form of a dividend. Advanced Energy Industries pays out 20.6% 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ASML | $30.59 billion | 9.73 | $8.19 billion | $23.73 | 31.88 |
| Advanced Energy Industries | $1.48 billion | 3.27 | $54.21 million | $1.94 | 66.30 |
ASML has higher revenue and earnings than Advanced Energy Industries. ASML is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for ASML and Advanced Energy Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ASML | 0 | 4 | 6 | 1 | 2.73 |
| Advanced Energy Industries | 0 | 3 | 6 | 1 | 2.80 |
ASML presently has a consensus price target of $913.80, indicating a potential upside of 20.79%. Advanced Energy Industries has a consensus price target of $124.67, indicating a potential downside of 3.08%. Given ASML’s higher probable upside, research analysts clearly believe ASML is more favorable than Advanced Energy Industries.
Profitability
This table compares ASML and Advanced Energy Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ASML | 28.32% | 51.82% | 19.61% |
| Advanced Energy Industries | 4.73% | 10.70% | 5.48% |
Institutional and Insider Ownership
26.1% of ASML shares are owned by institutional investors. Comparatively, 99.7% of Advanced Energy Industries shares are owned by institutional investors. 1.2% of Advanced Energy Industries 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 Advanced Energy Industries on 10 of the 15 factors compared between the two stocks.
About ASML
ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.
About Advanced Energy Industries
Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.
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