Photronics (NASDAQ: PLAB) and Chipmos Technologies (NASDAQ:IMOS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Photronics and Chipmos Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Photronics 0 0 0 0 N/A
Chipmos Technologies 0 0 0 0 N/A

Risk and Volatility

Photronics has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Chipmos Technologies has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Insider & Institutional Ownership

95.7% of Photronics shares are owned by institutional investors. Comparatively, 19.2% of Chipmos Technologies shares are owned by institutional investors. 3.7% of Photronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Photronics and Chipmos Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Photronics $483.46 million 1.30 $46.20 million $0.20 45.50
Chipmos Technologies $567.50 million 1.40 $43.24 million $2.64 7.04

Photronics has higher revenue, but lower earnings than Chipmos Technologies. Chipmos Technologies is trading at a lower price-to-earnings ratio than Photronics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Photronics and Chipmos Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Photronics 2.97% 1.33% 1.12%
Chipmos Technologies 19.18% 9.42% 4.96%

Dividends

Chipmos Technologies pays an annual dividend of $1.49 per share and has a dividend yield of 8.0%. Photronics does not pay a dividend. Chipmos Technologies pays out 56.4% of its earnings in the form of a dividend.

Summary

Chipmos Technologies beats Photronics on 7 of the 13 factors compared between the two stocks.

About Photronics

Photronics, Inc. is a manufacturer of photomasks, which are photographic quartz plates containing microscopic images of electronic circuits. As of October 30, 2016, the Company operated principally from nine manufacturing facilities: two located in Europe, three in Taiwan, one in Korea and three in the United States. Photomasks are used in the manufacture of semiconductors and flat panel displays (FPDs), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits (ICs), and a range of FPDs and other types of electrical and optical components. The Company offers reticle and photomask maintenance, including pellicle replacement, mask cleaning and re-certification, at all its sites across the world. Its products include Mature Binary, Advanced Binary Reticles, Phase Shift Masks-Embedded Attenuated Phase Shift Masks (EAPSM), Other Advanced Products and Large Area Masks.

About Chipmos Technologies

ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.

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