Comparing ACM Research (NASDAQ:ACMR) and Chipmos Technologies (NASDAQ:IMOS)

Chipmos Technologies (NASDAQ:IMOS) and ACM Research (NASDAQ:ACMR) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

7.4% of Chipmos Technologies shares are owned by institutional investors. Comparatively, 66.8% of ACM Research shares are owned by institutional investors. 22.7% of Chipmos Technologies shares are owned by insiders. Comparatively, 25.0% of ACM Research shares are owned by 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Chipmos Technologies and ACM Research, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chipmos Technologies	0	0	0	0	0.00
ACM Research	0	1	4	0	2.80

ACM Research has a consensus price target of $29.40, suggesting a potential upside of 5.08%. Given ACM Research’s stronger consensus rating and higher probable upside, analysts clearly believe ACM Research is more favorable than Chipmos Technologies.

Earnings and Valuation

This table compares Chipmos Technologies and ACM Research”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chipmos Technologies	$692.20 million	0.94	$43.90 million	$0.98	18.56
ACM Research	$782.12 million	2.10	$103.63 million	$1.56	17.94

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

Volatility and Risk

Chipmos Technologies has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, ACM Research has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Profitability

This table compares Chipmos Technologies and ACM Research’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chipmos Technologies	5.10%	4.69%	2.56%
ACM Research	13.28%	9.63%	5.74%

Summary

ACM Research beats Chipmos Technologies on 13 of the 14 factors compared between the two stocks.

About Chipmos Technologies

ChipMOS TECHNOLOGIES INC. engages in the research, development, manufacture, and sale of high-integration and high-precision integrated circuits, and related assembly and testing services in the People’s Republic of China, Taiwan, Japan, Singapore, and internationally. It operates through Testing; Assembly; Testing and Assembly for LCD, OLED and Other Display Panel Driver Semiconductors; Bumping; and Others segments. The company provides a range of back-end assembly and testing services, including engineering test, wafer probing, and final test of memory and logic/mixed-signal semiconductors, as well as leadframe-based and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors; and gold bumping, and testing and assembly services for LCD, OLED, and other panel display driver semiconductors. Its semiconductors are used in personal computers; office automation and consumer electronics; and communications equipment applications. The company was incorporated in 1997 and is headquartered in Hsinchu City, Taiwan.

About ACM Research

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the SAPS, TEBO, ULTRA C, ULTRA Fn, Ultra ECP, Ultra ECP map, and Ultra ECP ap trademarks through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.