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

Dividends

Advanced Semiconductor Engineering pays an annual dividend of $0.16 per share and has a dividend yield of 2.6%. PMC-Sierra does not pay a dividend. Advanced Semiconductor Engineering pays out 36.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Advanced Semiconductor Engineering and PMC-Sierra’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advanced Semiconductor Engineering $9.32 billion 1.08 $1.82 billion $0.44 14.07
PMC-Sierra N/A N/A N/A N/A N/A

Advanced Semiconductor Engineering has higher revenue and earnings than PMC-Sierra.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Advanced Semiconductor Engineering and PMC-Sierra, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Semiconductor Engineering 0 1 0 0 2.00
PMC-Sierra 0 0 0 0 N/A

Profitability

This table compares Advanced Semiconductor Engineering and PMC-Sierra’s 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%
PMC-Sierra 5.03% 4.71% 3.27%

Insider and Institutional Ownership

5.9% of Advanced Semiconductor Engineering shares are owned by institutional investors. 22.9% of Advanced Semiconductor Engineering shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Advanced Semiconductor Engineering beats PMC-Sierra on 7 of the 8 factors compared between the two stocks.

About Advanced Semiconductor Engineering

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.

About PMC-Sierra

PMC-Sierra, Inc. (PMC) is a semiconductor and software solution innovator transforming networks that connect, move, and store Big Data. The Company designs, develops, markets and supports semiconductor, embedded software, and board level solutions. The Company has approximately 700 different semiconductor devices that are sold to equipment and design manufacturers, who in turn supply their equipment principally to enterprises, Cloud Data Centers and carriers worldwide. The Company provides solutions for its customers across a range of applications and industry protocols. PMC’s portfolio of semiconductor devices is used in various applications of storage and communications network infrastructure equipment and enable the transporting and storing of digital data in a secure manner. The Company’s semiconductor devices enable networking equipment primarily in three market segments: Storage, Optical and Mobile networks.

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