Reviewing Sumco (OTCMKTS:SUOPY) and BE Semiconductor Industries (OTCMKTS:BESIY)

BE Semiconductor Industries (OTCMKTS:BESIY) and Sumco (OTCMKTS:SUOPY) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares BE Semiconductor Industries and Sumco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BE Semiconductor Industries	29.92%	39.31%	18.81%
Sumco	4.99%	3.97%	2.19%

Dividends

BE Semiconductor Industries pays an annual dividend of $2.11 per share and has a dividend yield of 1.7%. Sumco pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. BE Semiconductor Industries pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sumco pays out 20.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares BE Semiconductor Industries and Sumco”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BE Semiconductor Industries	$657.41 million	13.42	$196.95 million	$2.43	50.07
Sumco	$2.62 billion	0.88	$131.47 million	$0.67	19.72

BE Semiconductor Industries has higher earnings, but lower revenue than Sumco. Sumco is trading at a lower price-to-earnings ratio than BE Semiconductor Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BE Semiconductor Industries and Sumco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BE Semiconductor Industries	0	3	0	1	2.50
Sumco	0	0	0	0	0.00

Risk & Volatility

BE Semiconductor Industries has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Sumco has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Sumco shares are owned by institutional investors. 1.6% of BE Semiconductor Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

BE Semiconductor Industries beats Sumco on 12 of the 15 factors compared between the two stocks.

About BE Semiconductor Industries

BE Semiconductor Industries N.V. engages in the development, manufacture, marketing, sale, and service of semiconductor assembly equipment for the semiconductor and electronics industries in China, the United States, Malaysia, Ireland, Korea, Taiwan, Thailand, Other Asia Pacific and Europe, and internationally. It operates through three segments: Die Attach, Packaging, and Plating. The company's principal products include die attach equipment, such as single chip, multi-chip, multi module, flip chip, thermal compression bonding, fan out wafer level packaging, hybrid and embedded bridge die bonding, and die sorting systems; and packaging equipment, including conventional, ultra-thin, and wafer level molding, as well as trim and form, and singulation systems. It also provides plating equipment, such as tin, copper, and precious metal and solar plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company's principal brand names include Datacon, Esec, Fico, and Meco. It offers its products primarily to multinational chip manufacturers, assembly subcontractors, and electronics and industrial companies. BE Semiconductor Industries N.V. was incorporated in 1995 and is headquartered in Duiven, the Netherlands.

About Sumco

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.