GSI Technology (NASDAQ:GSIT – Get Free Report) and Amtech Systems (NASDAQ:ASYS – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility & Risk
GSI Technology has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Amtech Systems has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500.
Profitability
This table compares GSI Technology and Amtech Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GSI Technology | -62.90% | -21.39% | -17.73% |
| Amtech Systems | 4.90% | 6.33% | 4.00% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GSI Technology | $25.15 million | 6.39 | -$13.25 million | ($0.46) | -9.09 |
| Amtech Systems | $79.36 million | 2.92 | -$30.33 million | $0.26 | 50.98 |
GSI Technology has higher earnings, but lower revenue than Amtech Systems. GSI Technology is trading at a lower price-to-earnings ratio than Amtech Systems, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
33.2% of GSI Technology shares are owned by institutional investors. Comparatively, 50.2% of Amtech Systems shares are owned by institutional investors. 16.6% of GSI Technology shares are owned by company insiders. Comparatively, 26.9% of Amtech Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations for GSI Technology and Amtech Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GSI Technology | 1 | 0 | 1 | 0 | 2.00 |
| Amtech Systems | 0 | 3 | 1 | 0 | 2.25 |
GSI Technology presently has a consensus price target of $9.00, suggesting a potential upside of 115.31%. Amtech Systems has a consensus price target of $22.00, suggesting a potential upside of 65.98%. Given GSI Technology’s higher possible upside, equities analysts clearly believe GSI Technology is more favorable than Amtech Systems.
Summary
Amtech Systems beats GSI Technology on 9 of the 13 factors compared between the two stocks.
About GSI Technology
GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.
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.
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