Amtech Systems (NASDAQ:ASYS) vs. Semtech (NASDAQ:SMTC) Head to Head Survey

Amtech Systems (NASDAQ:ASYS) and Semtech (NASDAQ:SMTC) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Insider and Institutional Ownership

50.2% of Amtech Systems shares are owned by institutional investors. 26.9% of Amtech Systems shares are owned by insiders. Comparatively, 0.4% of Semtech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Amtech Systems and Semtech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amtech Systems	4.90%	6.33%	4.00%
Semtech	13.11%	21.74%	8.98%

Volatility and Risk

Amtech Systems has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, Semtech has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500.

Earnings & Valuation

This table compares Amtech Systems and Semtech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amtech Systems	$79.36 million	3.40	-$30.33 million	$0.26	59.35
Semtech	$1.05 billion	15.05	-$40.38 million	$1.51	112.14

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

Analyst Recommendations

This is a breakdown of recent ratings for Amtech Systems and Semtech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amtech Systems	0	3	1	0	2.25
Semtech	0	3	15	1	2.89

Amtech Systems currently has a consensus price target of $22.00, suggesting a potential upside of 42.58%. Semtech has a consensus price target of $204.71, suggesting a potential upside of 20.89%. Given Amtech Systems’ higher probable upside, analysts clearly believe Amtech Systems is more favorable than Semtech.

Summary

Semtech beats Amtech Systems on 11 of the 15 factors compared between the two stocks.

About Amtech Systems

Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.