Contrasting Diodes (NASDAQ:DIOD) and Screen (OTCMKTS:DINRF)

Screen (OTCMKTS:DINRF) and Diodes (NASDAQ:DIOD) are both mid-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Screen and Diodes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Screen	$4.02 billion	1.94	$607.23 million	$4.10	20.18
Diodes	$1.48 billion	2.98	$66.14 million	$1.85	51.86

Screen has higher revenue and earnings than Diodes. Screen 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 Screen and Diodes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Screen	14.32%	19.03%	12.23%
Diodes	5.27%	4.33%	3.41%

Institutional and Insider Ownership

99.2% of Diodes shares are owned by institutional investors. 1.7% of Diodes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Screen has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Diodes has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Screen and Diodes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Screen	1	0	0	0	1.00
Diodes	0	1	3	1	3.00

Diodes has a consensus price target of $135.00, indicating a potential upside of 40.71%. Given Diodes’ stronger consensus rating and higher probable upside, analysts plainly believe Diodes is more favorable than Screen.

Summary

Diodes beats Screen on 9 of the 15 factors compared between the two stocks.

About Screen

SCREEN Holdings Co., Ltd. develops, manufactures, sells, and maintains semiconductor production equipment in Japan, Taiwan, South Korea, China, the United States, Europe, and internationally. It operates in four segments: Semiconductor Production Equipment Business, Graphic Arts Equipment Business, Display Production Equipment and Coater Business, and PCB-Related Equipment Business. The company offers coat/develop trackers, wafer cleaning systems, annealing systems, measurement systems, inspection systems, and advanced packaging lithography equipment. It also provides coater systems, vacuum film deposition equipment, wet processors, dryers, heaters, exposures, and laminators/de-laminators. In addition, the company offers direct imaging systems, automatic optical inspection systems, automatic optical photomask inspection systems, and defect verification and repair systems; automatic final visual inspection systems; and setup stations and defect tabulation software. Further, it provides high-speed inkjet, label, wide format, CTP, network support, Hiragino font, and other workflow solutions; offset printing, digital book, manual, direct mail, transpromo, label production, package printing, display, and signage solutions; and artificial intelligence, text mining, augmented reality, image analysis, and congestion analysis solutions. Additionally, the company offers biosciences equipment; compact inkjet printing systems for tablets, UV inkjet printing systems for aluminum rolls, and inkjet printing systems for tablets; in-vehicle components for inspection and measurement; and lithium-ion rechargeable batteries and fuel cells. It also undertakes contract manufacturing and support, and intellectual property services related operations. The company was formerly known as Dainippon Screen Mfg. Co., Ltd. and changed its name to SCREEN Holdings Co., Ltd. in October 2014. SCREEN Holdings Co., Ltd. was founded in 1943 and is headquartered in Kyoto, Japan.

About Diodes

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.