Critical Review: Amkor Technology (AMKR) vs. Its Competitors

Amkor Technology (NASDAQ: AMKR) is one of 21 publicly-traded companies in the “Semiconductor Equipment & Testing” industry, but how does it weigh in compared to its competitors? We will compare Amkor Technology to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Institutional & Insider Ownership

38.5% of Amkor Technology shares are owned by institutional investors. Comparatively, 79.5% of shares of all “Semiconductor Equipment & Testing” companies are owned by institutional investors. 58.1% of Amkor Technology shares are owned by company insiders. Comparatively, 13.9% of shares of all “Semiconductor Equipment & Testing” companies 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.

Profitability

This table compares Amkor Technology and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amkor Technology 6.41% 12.32% 4.22%
Amkor Technology Competitors 7.16% 13.14% 7.71%

Analyst Recommendations

This is a summary of current ratings and target prices for Amkor Technology and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amkor Technology 0 1 0 0 2.00
Amkor Technology Competitors 60 518 1303 22 2.68

Amkor Technology currently has a consensus target price of $10.50, indicating a potential downside of 5.91%. As a group, “Semiconductor Equipment & Testing” companies have a potential upside of 6.52%. Given Amkor Technology’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Amkor Technology has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Amkor Technology and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Amkor Technology $3.89 billion $164.19 million 10.24
Amkor Technology Competitors $1.84 billion $242.64 million 3.56

Amkor Technology has higher revenue, but lower earnings than its competitors. Amkor Technology is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Amkor Technology has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500. Comparatively, Amkor Technology’s competitors have a beta of 1.25, suggesting that their average share price is 25% more volatile than the S&P 500.

Summary

Amkor Technology competitors beat Amkor Technology on 9 of the 13 factors compared.

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.

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