Analyzing SiTime (NASDAQ:SITM) & ASE Technology (NYSE:ASX)

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

Insider and Institutional Ownership

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

Earnings & 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	18.06	-$93.60 million	($4.05)	-38.31
ASE Technology	$595.41 billion	0.04	$1.01 billion	$0.45	22.54

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.

Risk & Volatility

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.

Analyst Recommendations

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

	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 currently has a consensus price target of $232.00, suggesting a potential upside of 49.53%. Given SiTime’s higher possible upside, equities research analysts plainly believe SiTime is more favorable than ASE Technology.

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.