Contrasting SEALSQ (NASDAQ:LAES) and ASE Technology (NYSE:ASX)

ASE Technology (NYSE:ASX) and SEALSQ (NASDAQ:LAES) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Volatility and Risk

ASE Technology has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, SEALSQ has a beta of -12.15, suggesting that its stock price is 1,315% less volatile than the S&P 500.

Valuation & Earnings

This table compares ASE Technology and SEALSQ”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASE Technology	$18.54 billion	2.03	$987.46 million	$0.50	33.99
SEALSQ	$10.98 million	72.83	-$21.20 million	N/A	N/A

ASE Technology has higher revenue and earnings than SEALSQ.

Profitability

This table compares ASE Technology and SEALSQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASE Technology	5.61%	10.67%	4.54%
SEALSQ	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ASE Technology and SEALSQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASE Technology	1	1	1	1	2.50
SEALSQ	1	1	1	0	2.00

SEALSQ has a consensus target price of $7.00, indicating a potential upside of 55.31%. Given SEALSQ’s higher possible upside, analysts clearly believe SEALSQ is more favorable than ASE Technology.

Insider & Institutional Ownership

6.8% of ASE Technology shares are held by institutional investors. Comparatively, 1.3% of SEALSQ shares are held by institutional investors. 22.9% of ASE Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

ASE Technology beats SEALSQ on 10 of the 12 factors compared between the two stocks.

About ASE Technology

ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.

About SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.