Critical Contrast: BE Semiconductor Industries (OTCMKTS:BESIY) vs. Axcelis Technologies (NASDAQ:ACLS)

BE Semiconductor Industries (OTCMKTS:BESIY) and Axcelis Technologies (NASDAQ:ACLS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for BE Semiconductor Industries and Axcelis Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BE Semiconductor Industries	0	4	1	2	2.71
Axcelis Technologies	0	4	1	0	2.20

Axcelis Technologies has a consensus target price of $118.33, suggesting a potential upside of 65.18%. Given Axcelis Technologies’ higher possible upside, analysts clearly believe Axcelis Technologies is more favorable than BE Semiconductor Industries.

Profitability

This table compares BE Semiconductor Industries and Axcelis Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BE Semiconductor Industries	29.68%	37.42%	16.21%
Axcelis Technologies	18.58%	18.55%	13.78%

Volatility and Risk

BE Semiconductor Industries has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Axcelis Technologies has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Valuation & Earnings

This table compares BE Semiconductor Industries and Axcelis Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BE Semiconductor Industries	$657.41 million	N/A	$196.93 million	$2.43	58.32
Axcelis Technologies	$1.02 billion	2.26	$200.99 million	$5.46	13.12

Axcelis Technologies has higher revenue and earnings than BE Semiconductor Industries. Axcelis Technologies is trading at a lower price-to-earnings ratio than BE Semiconductor Industries, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

90.0% of Axcelis Technologies shares are owned by institutional investors. 1.6% of BE Semiconductor Industries shares are owned by company insiders. Comparatively, 0.5% of Axcelis Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

BE Semiconductor Industries beats Axcelis Technologies on 8 of the 13 factors compared between the two stocks.

About BE Semiconductor Industries

BE Semiconductor Industries N.V. engages in the development, manufacture, marketing, sale, and service of semiconductor assembly equipment for the semiconductor and electronics industries in China, the United States, Malaysia, Ireland, Korea, Taiwan, Thailand, Other Asia Pacific and Europe, and internationally. It operates through three segments: Die Attach, Packaging, and Plating. The company's principal products include die attach equipment, such as single chip, multi-chip, multi module, flip chip, thermal compression bonding, fan out wafer level packaging, hybrid and embedded bridge die bonding, and die sorting systems; and packaging equipment, including conventional, ultra-thin, and wafer level molding, as well as trim and form, and singulation systems. It also provides plating equipment, such as tin, copper, and precious metal and solar plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company's principal brand names include Datacon, Esec, Fico, and Meco. It offers its products primarily to multinational chip manufacturers, assembly subcontractors, and electronics and industrial companies. BE Semiconductor Industries N.V. was incorporated in 1995 and is headquartered in Duiven, the Netherlands.

About Axcelis Technologies

Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia Pacific. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.