Analyzing ASE Technology (NYSE:ASX) & EMCORE (NYSE:EMKR)

ASE Technology (NYSE:ASX) and EMCORE (NASDAQ:EMKR) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Risk & Volatility

ASE Technology has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of ASE Technology shares are held by institutional investors. Comparatively, 52.5% of EMCORE shares are held by institutional investors. 22.9% of ASE Technology shares are held by insiders. Comparatively, 1.4% of EMCORE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ASE Technology and EMCORE’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ASE Technology $13.56 billion 0.81 $553.02 million $0.25 20.44
EMCORE $87.26 million 1.12 -$35.98 million ($0.71) -4.73

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

Profitability

This table compares ASE Technology and EMCORE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASE Technology 4.08% 7.67% 3.13%
EMCORE -35.81% -21.72% -15.70%

Analyst Recommendations

This is a summary of current recommendations and price targets for ASE Technology and EMCORE, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASE Technology 0 1 5 0 2.83
EMCORE 0 0 3 0 3.00

ASE Technology currently has a consensus price target of $30.00, suggesting a potential upside of 487.08%. EMCORE has a consensus price target of $4.73, suggesting a potential upside of 40.87%. Given ASE Technology’s higher probable upside, equities analysts clearly believe ASE Technology is more favorable than EMCORE.

Summary

ASE Technology beats EMCORE on 11 of the 14 factors compared between the two stocks.

ASE Technology Company Profile

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services (EMS) in the United States, Taiwan, Asia, Europe, and internationally. The company offers packaging services, including flip-chip ball grid array (BGA), flip-chip chip scale package (fcCSP), advanced chip scale packages (aCSP), quad flat packages, thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, high-band package on package, and 3D chip packages; stacked die solutions in various package types; and copper wire and silver bonding solutions, as well as module-based solutions. It also provides advanced packages, including aCSP; fcCSP; flip-chip package in package, package on package, and BGA packages; hybrid, advanced single sided substrate, integrated passive device, high-bandwidth, and fan-out wafer-level packages; IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. In addition, the company offers a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and test-related services, as well as drop shipment services; and packaging, testing and shipment, and flip-chip and wafer bumping services. Further, it provides electronic manufacturing services in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications; designs, assembles, manufactures, and sells electronic components and telecommunications equipment motherboards; develops, sells, and leases real estate properties; and produces substrates. The company serves customers in communication, computing, and consumer electronic/industrial/automotive sectors. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.

EMCORE Company Profile

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in California. It offers broadband products comprising cable television; laser, receiver, and photodetector component products; radio frequency over glass FTTP products; satellite/microwave communications products; and wireless communications products. The company also provides chip devices products, including high-power gain chips, GPON fiber-to-the-premises, and data center chip products; and navigation systems products, such as fiber optic gyroscope products and inertial measurement units and navigation systems products. It sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.

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