Amkor Technology (AMKR) and Brooks Automation (NASDAQ:BRKS) Financial Contrast

Brooks Automation (NASDAQ: BRKS) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Valuation and Earnings

This table compares Brooks Automation and Amkor Technology’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Brooks Automation	$668.56 million	2.51	$95.89 million	$0.80	31.19
Amkor Technology	$4.01 billion	0.50	$866.26 million	$1.11	7.62

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Brooks Automation and Amkor Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brooks Automation	0	1	5	0	2.83
Amkor Technology	0	1	0	0	2.00

Brooks Automation presently has a consensus price target of $27.67, indicating a potential upside of 10.89%. Amkor Technology has a consensus price target of $10.50, indicating a potential upside of 24.11%. Given Amkor Technology’s higher possible upside, analysts clearly believe Amkor Technology is more favorable than Brooks Automation.

Dividends

Brooks Automation pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Amkor Technology does not pay a dividend. Brooks Automation pays out 50.0% of its earnings in the form of a dividend.

Profitability

This table compares Brooks Automation and Amkor Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brooks Automation	8.34%	11.25%	8.96%
Amkor Technology	6.63%	12.95%	4.35%

Volatility & Risk

Brooks Automation has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.

Insider & Institutional Ownership

89.9% of Brooks Automation shares are owned by institutional investors. Comparatively, 38.8% of Amkor Technology shares are owned by institutional investors. 2.2% of Brooks Automation shares are owned by company insiders. Comparatively, 58.1% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Brooks Automation Company Profile

Brooks Automation, Inc. is a provider of automation and cryogenic solutions for various applications and markets. The Company operates through two segments: Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers critical automated transport, vacuum and contamination controls solutions and services. Its product offerings include robots and integrated automation systems for handling of substrates. It is also a provider of cryogenic components to create vacuum and thermal stability within critical operating environments in the manufacturing process. It also offers equipment for automated contamination control, conditioning and metrology solutions for wafer and reticle carriers. The Brooks Life Science Systems segment offers sample life cycle management solutions that provide life science and bioscience customers with a range of sample management solutions for scientific research and support drug development.

Amkor Technology Company Profile

Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company’s packaging and test services are designed to meet application and chip specific requirements, including the type of interconnect technology; size, thickness and electrical, and mechanical and thermal performance. It provides packaging and test services, including semiconductor wafer bump, wafer probe, wafer backgrind, package design, packaging, system-level, and final test and drop shipment services. The Company provides its services to integrated device manufacturers (IDMs), fabless semiconductor companies and contract foundries. IDMs design, manufacture, package and test semiconductors in their own facilities. The Company offers a range of advanced and mainstream packaging and test services. The Company’s mainstream packages include leadframe packages, substrate-based wirebond packages and micro-electro-mechanical systems packages.