Advanced Semiconductor Engineering (NYSE: ASX) and Semiconductor Manufacturing International Corporation (NYSE:SMI) 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 dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Dividends

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

Insider & Institutional Ownership

5.9% of Advanced Semiconductor Engineering shares are owned by institutional investors. Comparatively, 0.7% of Semiconductor Manufacturing International Corporation 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Advanced Semiconductor Engineering and Semiconductor Manufacturing International Corporation’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%
Semiconductor Manufacturing International Corporation 10.33% 5.63% 3.10%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Advanced Semiconductor Engineering and Semiconductor Manufacturing International Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Semiconductor Engineering 0 1 0 0 2.00
Semiconductor Manufacturing International Corporation 3 2 2 0 1.86

Semiconductor Manufacturing International Corporation has a consensus price target of $8.68, indicating a potential upside of 56.12%. Given Semiconductor Manufacturing International Corporation’s higher possible upside, analysts clearly believe Semiconductor Manufacturing International Corporation is more favorable than Advanced Semiconductor Engineering.

Volatility & Risk

Advanced Semiconductor Engineering has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International Corporation has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Earnings & Valuation

This table compares Advanced Semiconductor Engineering and Semiconductor Manufacturing International Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advanced Semiconductor Engineering $9.41 billion 1.07 $1.84 billion $0.44 14.05
Semiconductor Manufacturing International Corporation $3.13 billion 1.95 $1.14 billion $0.34 16.35

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

Summary

Advanced Semiconductor Engineering beats Semiconductor Manufacturing International Corporation on 10 of the 16 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 Semiconductor Manufacturing International Corporation

Semiconductor Manufacturing International Corporation is an investment holding company principally engaged in the computer-aided design, manufacture, packaging and trading of integrated circuits (IC), as well as the provision of other semiconductor services. The Company is also involved in the design and manufacture of semiconductor masks. The Company’s main products are various types of wafers. The Company distributes its products in domestic market and to overseas markets, such as the Europe and the United States.

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