Advanced Semiconductor Engineering (NYSE: ASX) and Himax Technologies (NASDAQ:HIMX) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Insider & Institutional Ownership

6.3% of Advanced Semiconductor Engineering shares are held by institutional investors. Comparatively, 22.4% of Himax Technologies shares are held by institutional investors. 22.9% of Advanced Semiconductor Engineering shares are held by insiders. Comparatively, 31.5% of Himax Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Advanced Semiconductor Engineering and Himax Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advanced Semiconductor Engineering 8.48% 14.06% 6.76%
Himax Technologies 2.58% 4.24% 2.52%

Volatility and Risk

Advanced Semiconductor Engineering has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Himax Technologies has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares Advanced Semiconductor Engineering and Himax Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advanced Semiconductor Engineering $9.34 billion 1.07 $1.82 billion $0.44 13.93
Himax Technologies $728.46 million N/A $36.54 million $0.12 72.17

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

Analyst Ratings

This is a summary of current ratings and price targets for Advanced Semiconductor Engineering and Himax Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Semiconductor Engineering 0 1 0 0 2.00
Himax Technologies 3 3 11 0 2.47

Himax Technologies has a consensus target price of $8.50, indicating a potential downside of 1.85%. Given Himax Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Himax Technologies is more favorable than Advanced Semiconductor Engineering.

Dividends

Advanced Semiconductor Engineering pays an annual dividend of $0.16 per share and has a dividend yield of 2.6%. Himax Technologies pays an annual dividend of $0.23 per share and has a dividend yield of 2.7%. Advanced Semiconductor Engineering pays out 36.4% of its earnings in the form of a dividend. Himax Technologies pays out 191.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Himax Technologies beats Advanced Semiconductor Engineering on 8 of the 15 factors compared between the two stocks.

Advanced Semiconductor Engineering Company Profile

Advanced Semiconductor Engineering, Inc. is a provider of semiconductor packaging and testing services. The Company offers a range of semiconductors packaging, testing and electronic manufacturing services (EMS). The Company’s segments include Packaging, Testing, EMS and Others. The Company provides services in packaging bare semiconductors into finished semiconductors with a range of electrical and thermal characteristics, as well as testing services, including front-end engineering testing, wafer probing and final testing services. It also sells goods from EMS. The Company engages in other activities, such as substrate production and real estate business. It provides integrated solutions for EMS in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis.

Himax Technologies Company Profile

Himax Technologies, Inc. is a fabless semiconductor solution provider. The Company is engaged in display driver integrated circuits (IC) and timing controllers used in televisions, laptops, monitors, mobile phones, tablets, digital cameras, car navigation and other consumer electronics devices. The Company operates through two segments: Driver IC and Non-driver products. In addition, the Company designs and provides controllers for touch sensor displays, liquid crystal on silicon micro-displays used in palm-size projectors and head-mounted displays, light-emitting diode driver ICs, power management ICs, scaler products for monitors and projectors, video processing IC solutions and silicon IPs. It also offers digital camera solutions, including complementary metal-oxide-semiconductor image sensors and wafer level optics, which are used in a range of applications, such as mobile phone, tablet, laptop, televisions, personal computer camera, automobile, security and medical devices.

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