SUMCO Corp/ADR (OTCMKTS: SUOPY) and TOKYO ELECTRON/ADR (OTCMKTS:TOELY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Valuation & Earnings

This table compares SUMCO Corp/ADR and TOKYO ELECTRON/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SUMCO Corp/ADR $2.32 billion 2.63 $240.45 million $1.64 25.40
TOKYO ELECTRON/ADR $10.21 billion 2.78 $1.84 billion $2.88 14.94

TOKYO ELECTRON/ADR has higher revenue and earnings than SUMCO Corp/ADR. TOKYO ELECTRON/ADR is trading at a lower price-to-earnings ratio than SUMCO Corp/ADR, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.6% of TOKYO ELECTRON/ADR shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for SUMCO Corp/ADR and TOKYO ELECTRON/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SUMCO Corp/ADR 0 0 0 0 N/A
TOKYO ELECTRON/ADR 0 0 0 0 N/A

Dividends

SUMCO Corp/ADR pays an annual dividend of $0.58 per share and has a dividend yield of 1.4%. TOKYO ELECTRON/ADR pays an annual dividend of $1.27 per share and has a dividend yield of 3.0%. SUMCO Corp/ADR pays out 35.4% of its earnings in the form of a dividend. TOKYO ELECTRON/ADR pays out 44.1% 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.

Profitability

This table compares SUMCO Corp/ADR and TOKYO ELECTRON/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SUMCO Corp/ADR 13.04% 13.62% 7.09%
TOKYO ELECTRON/ADR 17.26% 24.84% 16.49%

Risk and Volatility

SUMCO Corp/ADR has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500. Comparatively, TOKYO ELECTRON/ADR has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

TOKYO ELECTRON/ADR beats SUMCO Corp/ADR on 9 of the 12 factors compared between the two stocks.

SUMCO Corp/ADR Company Profile

SUMCO Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry in Japan, North America, Asia, and Europe. It offers monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers, as well as polycrystalline silicon. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to SUMCO Corporation in August 2005. SUMCO Corporation was founded in 1999 and is headquartered in Tokyo, Japan.

TOKYO ELECTRON/ADR Company Profile

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, distributes, and sells semiconductor and flat panel display (FPD) production equipment in Japan, the United States, Europe, South Korea, Taiwan, China, and internationally. The company's Semiconductor Production Equipment segment offers coaters/developers, plasma etch systems, thermal processing systems, single wafer deposition systems, cleaning systems used in wafer processing, wafer probers used in wafer testing process, electrochemical deposition systems, wafer bonders/debonders, surface preparation systems, test systems, SIC epitaxial CVD systems, gas cluster ion beam systems, and packaging products. Its Flat Panel Display Production Equipment segment provides coaters/developers and plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED panels. The company also offers photovoltaic panel production equipment; and logistic, facility maintenance, and insurance services. Tokyo Electron Limited was founded in 1963 and is headquartered in Tokyo, Japan.

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