Contrasting Nikon (OTCMKTS:NINOY) & Axcelis Technologies (NASDAQ:ACLS)

Axcelis Technologies (NASDAQ:ACLS) and Nikon (OTCMKTS:NINOY) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Axcelis Technologies and Nikon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axcelis Technologies	18.58%	18.55%	13.78%
Nikon	0.85%	0.90%	0.53%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Axcelis Technologies and Nikon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axcelis Technologies	0	4	1	0	2.20
Nikon	0	0	0	0	0.00

Axcelis Technologies presently has a consensus target price of $90.00, suggesting a potential upside of 26.98%. Given Axcelis Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Axcelis Technologies is more favorable than Nikon.

Valuation & Earnings

This table compares Axcelis Technologies and Nikon”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axcelis Technologies	$1.02 billion	2.24	$200.99 million	$5.46	12.98
Nikon	$4.70 billion	0.72	$40.41 million	$0.11	91.91

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

Institutional & Insider Ownership

90.0% of Axcelis Technologies shares are owned by institutional investors. Comparatively, 0.1% of Nikon shares are owned by institutional investors. 0.5% of Axcelis Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Axcelis Technologies has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Nikon has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Summary

Axcelis Technologies beats Nikon on 12 of the 14 factors compared between the two stocks.

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.

About Nikon

Nikon Corporation manufactures and sells optical instruments in Japan, North America, Europe, China, Thailand, and internationally. It operates through Imaging Products Business, Precision Equipment Business, Healthcare Business, Components Business, and Industrial equipment and Others segments. The Imaging Products Business segment provides digital SLR cameras, compact digital cameras, and interchangeable camera lenses. The Precision Equipment Business segment offers FPD lithography systems and semiconductor lithography systems. The Healthcare Business segment provides biological microscopes, cell culture observation systems, and ultra-wide field retinal imaging devices, as well as products and services related to the contract cell development and manufacturing field. The Components Business segment offers optical components, optical parts, encoders, and material processing products and services; EUV-related components and space-related solutions; and photomask substrates for FPDs. The Industrial equipment and Others segment provides industrial microscopes, non-contact 3D metrology systems, measuring instruments, X-ray/CT inspection systems, and surveying instruments. In addition, it sells used equipment; provides maintenance services for FPD/semiconductor lithography systems; sells and services cameras, microscopes, measuring instruments, and X-ray inspection equipment; and develops and supports computer software. Further, the company is involved in the procurement, logistics, and welfare activities; development, manufacturing, and testing services for eyeglass and lenses; and assembly of camera units. Nikon Corporation was incorporated in 1917 and is headquartered in Minato, Japan.