Contrasting Kulicke and Soffa Industries (NASDAQ:KLIC) and Navitas Semiconductor (NASDAQ:NVTS)

Kulicke and Soffa Industries (NASDAQ:KLIC) and Navitas Semiconductor (NASDAQ:NVTS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Profitability

This table compares Kulicke and Soffa Industries and Navitas Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kulicke and Soffa Industries	7.03%	8.55%	6.66%
Navitas Semiconductor	-183.04%	-18.81%	-15.21%

Risk & Volatility

Kulicke and Soffa Industries has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kulicke and Soffa Industries and Navitas Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kulicke and Soffa Industries	0	1	2	0	2.67
Navitas Semiconductor	0	3	3	0	2.50

Kulicke and Soffa Industries presently has a consensus price target of $62.00, suggesting a potential upside of 23.24%. Navitas Semiconductor has a consensus price target of $9.82, suggesting a potential upside of 105.80%. Given Navitas Semiconductor’s higher possible upside, analysts plainly believe Navitas Semiconductor is more favorable than Kulicke and Soffa Industries.

Insider and Institutional Ownership

98.2% of Kulicke and Soffa Industries shares are owned by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are owned by institutional investors. 0.0% of Kulicke and Soffa Industries shares are owned by company insiders. Comparatively, 36.8% of Navitas Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Kulicke and Soffa Industries and Navitas Semiconductor’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kulicke and Soffa Industries	$742.49 million	3.82	$57.15 million	$0.90	55.90
Navitas Semiconductor	$79.46 million	10.76	-$145.43 million	($0.88)	-5.42

Kulicke and Soffa Industries has higher revenue and earnings than Navitas Semiconductor. Navitas Semiconductor is trading at a lower price-to-earnings ratio than Kulicke and Soffa Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Kulicke and Soffa Industries beats Navitas Semiconductor on 9 of the 14 factors compared between the two stocks.

About Kulicke and Soffa Industries

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS). The company offers ball bonding equipment, wafer level bonding equipment, wedge bonding equipment; and advanced display, die-attach, and thermocompression systems and solutions, as well as tools, spares and services for equipment. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, foundry service providers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. The company was founded in 1951 and is headquartered in Fort Washington, Pennsylvania.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company's products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.