Advanced Semiconductor Engnrng (ASX) and Texas Instruments (TXN) Head-To-Head Review
Advanced Semiconductor Engnrng (NYSE: ASX) and Texas Instruments (NASDAQ:TXN) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Insider and Institutional Ownership
5.8% of Advanced Semiconductor Engnrng shares are owned by institutional investors. Comparatively, 84.0% of Texas Instruments shares are owned by institutional investors. 22.9% of Advanced Semiconductor Engnrng shares are owned by insiders. Comparatively, 1.0% of Texas Instruments shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Advanced Semiconductor Engnrng and Texas Instruments’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advanced Semiconductor Engnrng||$8.53 billion||1.25||$659.30 million||$0.46||14.00|
|Texas Instruments||$13.37 billion||7.61||$3.60 billion||$4.39||23.52|
Texas Instruments has higher revenue and earnings than Advanced Semiconductor Engnrng. Advanced Semiconductor Engnrng is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Advanced Semiconductor Engnrng has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
This table compares Advanced Semiconductor Engnrng and Texas Instruments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Semiconductor Engnrng||8.74%||13.80%||7.00%|
This is a breakdown of recent ratings and price targets for Advanced Semiconductor Engnrng and Texas Instruments, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Semiconductor Engnrng||0||0||0||0||N/A|
Texas Instruments has a consensus target price of $94.48, indicating a potential downside of 8.51%. Given Texas Instruments’ higher probable upside, analysts plainly believe Texas Instruments is more favorable than Advanced Semiconductor Engnrng.
Advanced Semiconductor Engnrng pays an annual dividend of $0.16 per share and has a dividend yield of 2.5%. Texas Instruments pays an annual dividend of $2.48 per share and has a dividend yield of 2.4%. Advanced Semiconductor Engnrng pays out 34.8% of its earnings in the form of a dividend. Texas Instruments pays out 56.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Advanced Semiconductor Engnrng is clearly the better dividend stock, given its higher yield and lower payout ratio.
Texas Instruments beats Advanced Semiconductor Engnrng on 12 of the 15 factors compared between the two stocks.
Advanced Semiconductor Engnrng Company Profile
Advanced Semiconductor Engineering, Inc. is a provider of semiconductor packaging and testing services. The Company offers a range of semiconductors packaging, testing and electronic manufacturing services (EMS). The Company’s segments include Packaging, Testing, EMS and Others. The Company provides services in packaging bare semiconductors into finished semiconductors with a range of electrical and thermal characteristics, as well as testing services, including front-end engineering testing, wafer probing and final testing services. It also sells goods from EMS. The Company engages in other activities, such as substrate production and real estate business. It provides integrated solutions for EMS in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis.
Texas Instruments Company Profile
Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. As of December 31, 2016, the Company had design, manufacturing or sales operations in more than 30 countries. The Company’s Analog segment’s product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA). HVAL products support applications, such as automotive safety devices, touchscreen controllers, low-voltage motor drivers and integrated motor controllers. The Company’s Embedded Processing segment’s product line includes Processor, Microcontrollers and Connectivity. Processor products include digital signal processors (DSPs) and applications processors. DSPs perform mathematical computations to process digital data.
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