Netlist (OTCMKTS:NLST) and BE Semiconductor Industrs (OTCMKTS:BESIY) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

0.0% of Netlist shares are owned by institutional investors. 6.9% of Netlist shares are owned by insiders. Comparatively, 1.6% of BE Semiconductor Industrs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Netlist and BE Semiconductor Industrs’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Netlist $26.10 million 3.09 -$12.45 million ($0.08) -5.59
BE Semiconductor Industrs $398.98 million 8.49 $91.08 million N/A N/A

BE Semiconductor Industrs has higher revenue and earnings than Netlist.

Risk & Volatility

Netlist has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, BE Semiconductor Industrs has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Netlist and BE Semiconductor Industrs, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netlist 0 1 0 0 2.00
BE Semiconductor Industrs 0 1 0 0 2.00

Netlist presently has a consensus target price of $0.30, indicating a potential downside of 32.96%. BE Semiconductor Industrs has a consensus target price of $30.00, indicating a potential downside of 29.09%. Given BE Semiconductor Industrs’ higher possible upside, analysts plainly believe BE Semiconductor Industrs is more favorable than Netlist.

Profitability

This table compares Netlist and BE Semiconductor Industrs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Netlist -27.91% N/A -49.89%
BE Semiconductor Industrs 23.40% 30.35% 12.57%

Summary

BE Semiconductor Industrs beats Netlist on 9 of the 11 factors compared between the two stocks.

About Netlist

Netlist, Inc. designs, manufactures, and sells modular memory subsystems for the server, high-performance computing, and communications markets worldwide. It offers Hybri dual in-line memory module (DIMM), a storage class memory product, which unifies dynamic random access memory (DRAM)and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as EXPRESSvault PCIe, a plug-and-play memory card, which offers data acceleration and data protection for server appliances; NVvault DDR3 NVDIMM comprising data acceleration and data protection in a joint electron device engineering council (JEDEC)standard DD3 interface for integration into industry-standard server and storage solutions; NVvault DDR4 NVDIMM, which provides data acceleration and data protection in a JEDEC standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. In addition, it resells Samsung products; and sells component inventory of DRAM ICs and NAND flash to distributors and other users of memory integrated circuits. The company markets and sells its products primarily to original equipment manufacturers through a direct sales force and a network of independent sales representatives. Netlist, Inc. was founded in 2000 and is headquartered in Irvine, California.

About BE Semiconductor Industrs

BE Semiconductor Industries N.V. develops, manufactures, markets, sells, and services semiconductor assembly equipment for the semiconductor and electronics industries worldwide. The company's principal products include die attach equipment, such as single chips, multi chips, multi modules, flip chips, TCB and eWLB die bonding systems, and die sorting systems; and packaging equipment comprising conventional, ultra thin, and wafer level molding, as well as trim and form, and singulation systems. Its principal products also comprise plating equipment consisting of tin, copper, and precious metal plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company provides its products primarily to chip manufacturers, assembly subcontractors, and electronics and industrial companies. BE Semiconductor Industries N.V. was founded in 1995 and is headquartered in Duiven, the Netherlands.

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