Disco (OTCMKTS:DSCSY) versus Amkor Technology (NASDAQ:AMKR) Financial Comparison

Amkor Technology (NASDAQ:AMKR) and Disco (OTCMKTS:DSCSY) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Dividends

Amkor Technology pays an annual dividend of $0.33 per share and has a dividend yield of 0.9%. Disco pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Amkor Technology pays out 13.3% of its earnings in the form of a dividend. Disco pays out 29.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amkor Technology has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

42.8% of Amkor Technology shares are owned by institutional investors. Comparatively, 0.0% of Disco shares are owned by institutional investors. 26.4% of Amkor Technology shares are owned by 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.

Earnings and Valuation

This table compares Amkor Technology and Disco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amkor Technology	$7.46 billion	1.24	$373.89 million	$2.48	15.06
Disco	$2.90 billion	11.30	$894.45 million	$0.94	32.14

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

Analyst Ratings

This is a summary of current recommendations and price targets for Amkor Technology and Disco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amkor Technology	1	5	5	0	2.36
Disco	0	1	1	0	2.50

Amkor Technology presently has a consensus target price of $62.12, suggesting a potential upside of 66.31%. Given Amkor Technology’s higher probable upside, equities analysts plainly believe Amkor Technology is more favorable than Disco.

Profitability

This table compares Amkor Technology and Disco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amkor Technology	8.30%	13.32%	6.85%
Disco	32.04%	27.68%	21.83%

Risk & Volatility

Amkor Technology has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, Disco has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Summary

Amkor Technology beats Disco on 9 of the 17 factors compared between the two stocks.

About Amkor Technology

Amkor Technology is a provider of outsourced semiconductor packaging and test services. It works with semiconductor companies to assemble and test integrated circuits before they are incorporated into electronic products. Its services include advanced packaging, wafer bumping, flip-chip packaging, wafer-level packaging, system-in-package solutions, and semiconductor testing. These technologies support applications in markets such as communications, automotive, computing, and consumer electronics.

About Disco

DISCO Corporation develops and manufactures precision processing equipment and tools used in semiconductor and electronic-component production. Its products include grinding, dicing and polishing machines, along with the blades and other consumables used in those processes. The company’s technologies help manufacturers cut, thin and shape semiconductor wafers and other hard, brittle materials. DISCO serves customers in the global semiconductor industry and maintains operations and support for customers in markets around the world.