Kulicke and Soffa Industries (NASDAQ:KLIC) versus Viavi Solutions (NASDAQ:VIAV) Critical Survey

Kulicke and Soffa Industries (NASDAQ:KLICGet Rating) and Viavi Solutions (NASDAQ:VIAVGet Rating) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Kulicke and Soffa Industries and Viavi Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kulicke and Soffa Industries 28.33% 46.89% 32.98%
Viavi Solutions -0.23% 22.22% 8.63%

Institutional and Insider Ownership

97.0% of Kulicke and Soffa Industries shares are held by institutional investors. Comparatively, 93.8% of Viavi Solutions shares are held by institutional investors. 2.5% of Kulicke and Soffa Industries shares are held by insiders. Comparatively, 1.6% of Viavi Solutions shares are held 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.

Earnings & Valuation

This table compares Kulicke and Soffa Industries and Viavi Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kulicke and Soffa Industries $1.52 billion 1.66 $367.16 million $7.86 5.42
Viavi Solutions $1.20 billion 2.50 $46.10 million ($0.03) -438.67

Kulicke and Soffa Industries has higher revenue and earnings than Viavi Solutions. Viavi Solutions is trading at a lower price-to-earnings ratio than Kulicke and Soffa Industries, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Kulicke and Soffa Industries has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kulicke and Soffa Industries and Viavi Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kulicke and Soffa Industries 0 2 2 0 2.50
Viavi Solutions 0 2 1 0 2.33

Kulicke and Soffa Industries presently has a consensus target price of $79.00, suggesting a potential upside of 85.53%. Viavi Solutions has a consensus target price of $19.67, suggesting a potential upside of 49.44%. Given Kulicke and Soffa Industries’ stronger consensus rating and higher probable upside, equities analysts plainly believe Kulicke and Soffa Industries is more favorable than Viavi Solutions.

Summary

Kulicke and Soffa Industries beats Viavi Solutions on 13 of the 14 factors compared between the two stocks.

About Kulicke and Soffa Industries (Get Rating)

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through two segments, Capital Equipment, and Aftermarket Products and Services (APS). The company manufactures and sells advanced displays; die-transfer, flip-chip, and TCB advanced packaging products; ball bonder, die-attach, electronics assembly, lithography, wafer-level bonder, and wedge bonder products; consumables, such as capillaries, dicing blades, and wedge bonds; and auto offline programming, KNet PLUS, and new product introduction/manufacturing execution system software products. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.

About Viavi Solutions (Get Rating)

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, government, and avionics customers worldwide. The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP) segments. The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and instrumentation for communication and safety. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The OSP segment offers optical products for anti-counterfeiting, consumer and industrial, government, automotive, and industrial markets. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1923 and is headquartered in Scottsdale, Arizona.

Receive News & Ratings for Kulicke and Soffa Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kulicke and Soffa Industries and related companies with MarketBeat.com's FREE daily email newsletter.