Tuesday, February 26, 2019

Reviewing Ichor (ICHR) and Amkor Technology (AMKR)

Ichor (NASDAQ:ICHR) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Valuation & Earnings

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This table compares Ichor and Amkor Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ichor $823.61 million 0.60 $57.88 million $2.79 7.75
Amkor Technology $4.32 billion 0.52 $127.09 million $0.53 17.62

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

Profitability

This table compares Ichor and Amkor Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ichor 7.03% 30.78% 12.90%
Amkor Technology 2.94% 7.14% 2.87%

Institutional & Insider Ownership

98.7% of Ichor shares are owned by institutional investors. Comparatively, 39.0% of Amkor Technology shares are owned by institutional investors. 2.2% of Ichor shares are owned by company insiders. Comparatively, 57.9% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Ichor has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ichor and Amkor Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ichor 0 1 4 0 2.80
Amkor Technology 1 3 0 0 1.75

Ichor presently has a consensus price target of $29.00, indicating a potential upside of 34.07%. Amkor Technology has a consensus price target of $7.00, indicating a potential downside of 25.05%. Given Ichor’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ichor is more favorable than Amkor Technology.

Summary

Ichor beats Amkor Technology on 10 of the 14 factors compared between the two stocks.

Ichor Company Profile

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States, the United Kingdom, Singapore, Malaysia, and South Korea. It primarily offers gas and chemical delivery subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising electroplating and cleaning. It also manufactures precision machined components, weldments, and proprietary products for use in fluid delivery systems. Ichor Holdings, Ltd. was founded in 1999 and is headquartered in Fremont, California.

Amkor Technology Company Profile

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. The company offers turnkey packaging and test services, including semiconductor wafer bumps, wafer probes, wafer back-grinds, package design, packaging, and test and drop shipment services. Its packages employ wirebond, flip chip, and copper clip and other interconnect technologies. The company also provides semiconductor testing services, such as wafer testing or probe, and final test services; flip chip scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory, and as applications processors in mobile devices; and flip chip ball grid array products for various networking, storage, computing, and consumer applications. In addition, it offers wafer-level CSP packages used in power management, transceivers, sensors, wireless charging, codecs, and specialty silicon; Wafer-level fan-out packages used in ICs; and silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure. Further, the company provides leadframe packages that are used in electronic devices for low to medium pin count applications; substrate-based wirebond packages, which are used to connect a die to a substrate; micro-electro-mechanical systems (MEMS) packages that are miniaturized mechanical and electro-mechanical devices; and advanced system-in-package modules, which are used in radio frequency and front end modules, baseband processing, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid state drives. It primarily serves integrated device manufacturers, fabless semiconductor companies, and contract foundries. Amkor Technology, Inc. was founded in 1968 and is headquartered in Tempe, Arizona.

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