ASE Technology (NYSE:ASX) & Advantest (OTCMKTS:ATEYY) Head-To-Head Survey

ASE Technology (NYSE:ASX) and Advantest (OTCMKTS:ATEYY) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Institutional and Insider Ownership

6.8% of ASE Technology shares are owned by institutional investors. Comparatively, 0.0% of Advantest shares are owned by institutional investors. 22.9% of ASE Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares ASE Technology and Advantest”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASE Technology	$610.76 billion	0.04	$1.01 billion	$0.47	21.22
Advantest	$3.37 billion	10.99	$429.80 million	$1.22	41.11

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ASE Technology	5.44%	9.86%	4.59%
Advantest	19.95%	29.15%	18.39%

Volatility & Risk

ASE Technology has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Advantest has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for ASE Technology and Advantest, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASE Technology	0	0	2	0	3.00
Advantest	0	1	0	0	2.00

Dividends

ASE Technology pays an annual dividend of $0.23 per share and has a dividend yield of 2.3%. Advantest pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. ASE Technology pays out 48.9% of its earnings in the form of a dividend. Advantest pays out 16.4% 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.

Summary

Advantest beats ASE Technology on 8 of the 15 factors compared between the two stocks.

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.

About Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics related products in Japan, the Americas, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Services, Support and Others segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease and other businesses. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.