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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Photronics $437.08 million 1.25 $111.14 million $0.20 40.00
Amkor Technology $4.01 billion 0.54 $866.26 million $1.11 8.18

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

Profitability

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

Net Margins Return on Equity Return on Assets
Photronics 2.97% 1.34% 1.12%
Amkor Technology 6.63% 12.95% 4.35%

Institutional & Insider Ownership

96.1% of Photronics shares are owned by institutional investors. Comparatively, 38.7% of Amkor Technology shares are owned by institutional investors. 3.7% of Photronics shares are owned by company insiders. Comparatively, 58.1% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Photronics has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Photronics 0 2 1 0 2.33
Amkor Technology 0 1 0 0 2.00

Photronics presently has a consensus price target of $12.00, indicating a potential upside of 50.00%. Amkor Technology has a consensus price target of $10.50, indicating a potential upside of 15.64%. Given Photronics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Photronics is more favorable than Amkor Technology.

Summary

Amkor Technology beats Photronics on 8 of the 14 factors compared between the two stocks.

Photronics Company Profile

Photronics, Inc. is a manufacturer of photomasks, which are photographic quartz plates containing microscopic images of electronic circuits. As of October 30, 2016, the Company operated principally from nine manufacturing facilities: two located in Europe, three in Taiwan, one in Korea and three in the United States. Photomasks are used in the manufacture of semiconductors and flat panel displays (FPDs), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits (ICs), and a range of FPDs and other types of electrical and optical components. The Company offers reticle and photomask maintenance, including pellicle replacement, mask cleaning and re-certification, at all its sites across the world. Its products include Mature Binary, Advanced Binary Reticles, Phase Shift Masks-Embedded Attenuated Phase Shift Masks (EAPSM), Other Advanced Products and Large Area Masks.

Amkor Technology Company Profile

Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company’s packaging and test services are designed to meet application and chip specific requirements, including the type of interconnect technology; size, thickness and electrical, and mechanical and thermal performance. It provides packaging and test services, including semiconductor wafer bump, wafer probe, wafer backgrind, package design, packaging, system-level, and final test and drop shipment services. The Company provides its services to integrated device manufacturers (IDMs), fabless semiconductor companies and contract foundries. IDMs design, manufacture, package and test semiconductors in their own facilities. The Company offers a range of advanced and mainstream packaging and test services. The Company’s mainstream packages include leadframe packages, substrate-based wirebond packages and micro-electro-mechanical systems packages.

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