Head to Head Comparison: Onto Innovation (NYSE:ONTO) versus ams-OSRAM (OTCMKTS:AMSSY)

ams-OSRAM (OTCMKTS:AMSSY) and Onto Innovation (NYSE:ONTO) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Volatility and Risk

ams-OSRAM has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Onto Innovation has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Valuation and Earnings

This table compares ams-OSRAM and Onto Innovation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	$3.76 billion	0.54	-$147.08 million	($1.91)	-5.37
Onto Innovation	$1.01 billion	12.20	$136.76 million	$2.66	93.98

Onto Innovation has lower revenue, but higher earnings than ams-OSRAM. ams-OSRAM is trading at a lower price-to-earnings ratio than Onto Innovation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ams-OSRAM and Onto Innovation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	1	2	1	0	2.00
Onto Innovation	0	1	10	2	3.08

Onto Innovation has a consensus price target of $378.00, suggesting a potential upside of 51.20%. Given Onto Innovation’s stronger consensus rating and higher possible upside, analysts clearly believe Onto Innovation is more favorable than ams-OSRAM.

Profitability

This table compares ams-OSRAM and Onto Innovation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	-9.74%	-7.58%	-1.01%
Onto Innovation	11.84%	13.44%	10.30%

Institutional & Insider Ownership

98.3% of Onto Innovation shares are held by institutional investors. 0.5% of Onto Innovation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Onto Innovation beats ams-OSRAM on 13 of the 15 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.

About Onto Innovation

Onto Innovation Inc. engages in the design, development, manufacture, and support of process control tools that performs optical metrology. The company offers lithography systems and process control analytical software. It also offers process and yield management solutions, and device packaging and test facilities through standalone systems for optical metrology, macro-defect inspection, packaging lithography, and transparent and opaque thin film measurements. In addition, the company provides process control software portfolio that includes solutions for standalone tools, groups of tools, and enterprise-or factory-wide suites. Further, it engages in systems software, spare parts, and other services, as well as offers software licensing services. The company's products are used in semiconductor and advanced packaging device manufacturers; silicon wafer; light emitting diode; vertical-cavity surface-emitting laser; micro-electromechanical system; CMOS image sensor; power device; analog device; RF filter; data storage; and various industrial and scientific applications. Onto Innovation Inc. was founded in 1940 and is headquartered in Wilmington, Massachusetts.