Qnity Electronics (NYSE:Q) & ASML (NASDAQ:ASML) Head-To-Head Survey

ASML (NASDAQ:ASML) and Qnity Electronics (NYSE:Q) are both large-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Dividends

ASML pays an annual dividend of $7.27 per share and has a dividend yield of 0.4%. Qnity Electronics pays an annual dividend of $0.32 per share and has a dividend yield of 0.2%. ASML pays out 22.6% of its earnings in the form of a dividend. Qnity Electronics pays out 11.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares ASML and Qnity Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASML	30.11%	52.71%	22.10%
Qnity Electronics	11.25%	10.83%	6.26%

Analyst Ratings

This is a summary of current ratings and price targets for ASML and Qnity Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASML	3	3	19	3	2.79
Qnity Electronics	0	2	8	0	2.80

ASML currently has a consensus target price of $1,970.33, suggesting a potential upside of 7.43%. Qnity Electronics has a consensus target price of $149.56, suggesting a potential upside of 11.93%. Given Qnity Electronics’ stronger consensus rating and higher probable upside, analysts clearly believe Qnity Electronics is more favorable than ASML.

Institutional and Insider Ownership

26.1% of ASML shares are owned by institutional investors. 0.2% of Qnity Electronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares ASML and Qnity Electronics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASML	$36.95 billion	19.52	$10.87 billion	$32.14	57.07
Qnity Electronics	$4.75 billion	5.88	$692.00 million	$2.80	47.72

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

Summary

ASML beats Qnity Electronics on 12 of the 16 factors compared between the two stocks.

About ASML

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

About Qnity Electronics

Qnity Electronics Inc. is a premier technology solution provider across the semiconductor value chain. Qnity Electronics Inc. is based in WILMINGTON, Del.