Amtech Systems (NASDAQ:ASYS – Get Free Report) and SemiLEDS (NASDAQ:LEDS – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Valuation and Earnings
This table compares Amtech Systems and SemiLEDS”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amtech Systems | $79.36 million | 2.74 | -$30.33 million | $0.26 | 47.77 |
| SemiLEDS | $43.01 million | 0.39 | -$1.13 million | ($0.13) | -15.45 |
SemiLEDS has lower revenue, but higher earnings than Amtech Systems. SemiLEDS is trading at a lower price-to-earnings ratio than Amtech Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Amtech Systems and SemiLEDS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amtech Systems | 4.90% | 6.33% | 4.00% |
| SemiLEDS | -3.92% | -43.09% | -6.39% |
Insider and Institutional Ownership
50.2% of Amtech Systems shares are held by institutional investors. Comparatively, 76.3% of SemiLEDS shares are held by institutional investors. 26.9% of Amtech Systems shares are held by insiders. Comparatively, 58.5% of SemiLEDS shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Amtech Systems has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, SemiLEDS has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Amtech Systems and SemiLEDS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amtech Systems | 0 | 3 | 2 | 0 | 2.40 |
| SemiLEDS | 1 | 0 | 0 | 0 | 1.00 |
Amtech Systems presently has a consensus price target of $22.00, indicating a potential upside of 77.13%. Given Amtech Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Amtech Systems is more favorable than SemiLEDS.
Summary
Amtech Systems beats SemiLEDS on 11 of the 14 factors compared between the two stocks.
About Amtech Systems
Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.
About SemiLEDS
SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.
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