Analyzing ASE Technology (NYSE:ASX) and Photronics (NASDAQ:PLAB)

Photronics (NASDAQ:PLAB) and ASE Technology (NYSE:ASX) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Photronics and ASE Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Photronics	$849.29 million	2.19	$136.40 million	$2.84	11.09
ASE Technology	$20.73 billion	5.12	$1.28 billion	$0.86	55.18

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

Profitability

This table compares Photronics and ASE Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Photronics	19.05%	7.45%	6.53%
ASE Technology	8.52%	16.12%	6.47%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Photronics and ASE Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Photronics	0	2	3	1	2.83
ASE Technology	0	1	1	1	3.00

Photronics currently has a consensus price target of $49.33, suggesting a potential upside of 56.66%. Given Photronics’ higher probable upside, equities research analysts clearly believe Photronics is more favorable than ASE Technology.

Risk and Volatility

Photronics has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, ASE Technology has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Institutional & Insider Ownership

88.4% of Photronics shares are held by institutional investors. Comparatively, 6.8% of ASE Technology shares are held by institutional investors. 3.3% of Photronics shares are held by insiders. Comparatively, 22.9% of ASE Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

ASE Technology beats Photronics on 8 of the 14 factors compared between the two stocks.

About Photronics

Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company offers electrical and optical components. It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut.

About ASE Technology

ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.