Axcelis Technologies (NASDAQ: ACLS) and Entegris (NASDAQ:ENTG) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Institutional & Insider Ownership

78.0% of Axcelis Technologies shares are owned by institutional investors. Comparatively, 96.2% of Entegris shares are owned by institutional investors. 5.7% of Axcelis Technologies shares are owned by company insiders. Comparatively, 1.5% of Entegris shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Axcelis Technologies and Entegris, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axcelis Technologies 0 2 3 0 2.60
Entegris 0 3 7 1 2.82

Axcelis Technologies currently has a consensus target price of $30.40, suggesting a potential upside of 0.16%. Entegris has a consensus target price of $32.30, suggesting a potential upside of 4.03%. Given Entegris’ stronger consensus rating and higher possible upside, analysts plainly believe Entegris is more favorable than Axcelis Technologies.

Dividends

Entegris pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. Axcelis Technologies does not pay a dividend. Entegris pays out 7.2% of its earnings in the form of a dividend.

Profitability

This table compares Axcelis Technologies and Entegris’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axcelis Technologies 10.80% 16.37% 10.94%
Entegris 10.73% 18.82% 10.52%

Valuation and Earnings

This table compares Axcelis Technologies and Entegris’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axcelis Technologies $266.98 million 3.57 $11.00 million $1.19 25.50
Entegris $1.18 billion 3.74 $97.14 million $0.97 32.01

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

Risk and Volatility

Axcelis Technologies has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Entegris has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Summary

Entegris beats Axcelis Technologies on 11 of the 17 factors compared between the two stocks.

Axcelis Technologies Company Profile

Axcelis Technologies, Inc. designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. The Company also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services and customer training. The Company offers a complete line of high energy, high current and medium current implanters for all application requirements. The Company’s Purion XE high energy system combines its radio frequency (RF) Linac high energy, spot beam technology with the Purion platform. The Company also offers the Purion M medium current system. The Company’s Purion M systems also offer differentiation for specialty applications, such as hot silicon carbide. The Company’s Purion H high current system is extendable into ultra-low energy applications to satisfy future process requirements, including leakage current performance.

Entegris Company Profile

Entegris, Inc. is a global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. The Company operates in three business segments: Specialty Chemicals and Engineered Materials (SCEM), Advanced Materials Handling (AMH) and Microcontamination Control (MC). The SCEM segment provides process chemistries, gases, materials and delivery systems to support semiconductor and other manufacturing processes. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a set of applications in the semiconductor industry and other high-technology industries. AMH offers wafer solutions, chemical containers and fluidics. MC offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

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