Reviewing Amtech Systems (NASDAQ:ASYS) & STMicroelectronics (NYSE:STM)

STMicroelectronics (NYSE:STMGet Free Report) and Amtech Systems (NASDAQ:ASYSGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Profitability

This table compares STMicroelectronics and Amtech Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STMicroelectronics 8.94% 6.28% 4.43%
Amtech Systems -34.79% -2.51% -1.67%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for STMicroelectronics and Amtech Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STMicroelectronics 1 8 5 1 2.40
Amtech Systems 0 0 0 0 0.00

STMicroelectronics currently has a consensus target price of $29.67, indicating a potential downside of 6.93%. Given STMicroelectronics’ stronger consensus rating and higher probable upside, research analysts clearly believe STMicroelectronics is more favorable than Amtech Systems.

Volatility & Risk

STMicroelectronics has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Amtech Systems has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Institutional and Insider Ownership

5.1% of STMicroelectronics shares are owned by institutional investors. Comparatively, 50.2% of Amtech Systems shares are owned by institutional investors. 8.0% of Amtech Systems 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.

Valuation & Earnings

This table compares STMicroelectronics and Amtech Systems”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STMicroelectronics $12.32 billion 2.32 $1.56 billion $1.18 27.01
Amtech Systems $101.21 million 0.64 -$8.49 million ($2.22) -2.04

STMicroelectronics has higher revenue and earnings than Amtech Systems. Amtech Systems is trading at a lower price-to-earnings ratio than STMicroelectronics, indicating that it is currently the more affordable of the two stocks.

Summary

STMicroelectronics beats Amtech Systems on 13 of the 15 factors compared between the two stocks.

About STMicroelectronics

(Get Free Report)

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.

About Amtech Systems

(Get Free Report)

Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.

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