Contrasting Amkor Technology (AMKR) and Diodes (DIOD)

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

Insider & Institutional Ownership

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40.2% of Amkor Technology shares are owned by institutional investors. Comparatively, 80.1% of Diodes shares are owned by institutional investors. 57.9% of Amkor Technology shares are owned by company insiders. Comparatively, 6.7% of Diodes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Amkor Technology and Diodes’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amkor Technology $4.19 billion 0.56 $260.70 million $0.58 16.78
Diodes $1.05 billion 1.41 -$1.80 million $1.37 21.82

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

Profitability

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

Net Margins Return on Equity Return on Assets
Amkor Technology 6.23% 8.81% 3.13%
Diodes -0.17% 7.94% 4.50%

Volatility and Risk

Amkor Technology has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, Diodes has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Amkor Technology and Diodes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amkor Technology 0 1 1 0 2.50
Diodes 0 1 4 0 2.80

Amkor Technology currently has a consensus price target of $10.50, suggesting a potential upside of 7.91%. Diodes has a consensus price target of $35.67, suggesting a potential upside of 19.29%. Given Diodes’ stronger consensus rating and higher possible upside, analysts clearly believe Diodes is more favorable than Amkor Technology.

Summary

Diodes beats Amkor Technology on 8 of the 14 factors compared between the two stocks.

About Amkor Technology

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.

About Diodes

Diodes Incorporated, together with its subsidiaries, designs, manufactures, and supplies application-specific standard products in the discrete, logic, and analog and mixed semiconductor markets in Asia, North America, Europe, and internationally. It primarily focuses on low pin count semiconductor devices with one or more active or passive components. The company offers discrete semiconductor products, such as performance Schottky rectifiers and diodes; Zener diodes, including tight tolerance and low operating current type performance Zener diodes; standard, fast, super-fast, and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar and pre-biased transistors; MOSFETs; thyristor surge protection devices; and transient voltage suppressors. It also provides analog products comprising power management devices consisting of AC-DC and DC-DC converters, USB power switches, and low dropout and linear voltage regulators; linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including hall-effect sensors and motor drivers. In addition, the company offers standard logic products comprising low-voltage complementary metal?oxide?semiconductor (CMOS) and high-speed CMOS devices; ultra-low power CMOS logic products and analog switches; multichip products and co-packaged discrete, analog, and mixed-signal silicon in miniature packages; silicon and silicon epitaxial wafers; and crystals and oscillators. It sells its products to the consumer electronics, computing, communications, industrial, and automotive markets through direct sales and marketing personnel, independent sales representatives, and distributors. Diodes Incorporated was founded in 1959 and is headquartered in Plano, Texas.

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