Financial Analysis: ASE Technology (NYSE:ASX) and SiTime (NASDAQ:SITM)

SiTime (NASDAQ:SITM) and ASE Technology (NYSE:ASX) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares SiTime and ASE Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$202.70 million	19.56	-$93.60 million	($4.05)	-41.47
ASE Technology	$18.54 billion	1.29	$1.01 billion	$0.45	24.10

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

Analyst Ratings

This is a breakdown of current ratings for SiTime and ASE Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	1	0	4	0	2.60
ASE Technology	0	0	2	0	3.00

SiTime presently has a consensus target price of $232.00, indicating a potential upside of 38.12%. Given SiTime’s higher probable upside, equities research analysts clearly believe SiTime is more favorable than ASE Technology.

Insider & Institutional Ownership

84.3% of SiTime shares are held by institutional investors. Comparatively, 6.8% of ASE Technology shares are held by institutional investors. 2.3% of SiTime shares are held by insiders. Comparatively, 22.9% of ASE Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

SiTime has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, ASE Technology has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiTime	-46.18%	-10.12%	-7.86%
ASE Technology	5.44%	9.86%	4.59%

Summary

ASE Technology beats SiTime on 9 of the 14 factors compared between the two stocks.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

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.