Kulicke and Soffa Industries (NASDAQ:KLIC – Get Free Report) and Sumco (OTCMKTS:SUOPY – Get Free Report) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Dividends
Kulicke and Soffa Industries pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. Sumco pays an annual dividend of $0.29 per share and has a dividend yield of 1.5%. Kulicke and Soffa Industries pays out -76.9% of its earnings in the form of a dividend. Sumco pays out 28.2% 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. Kulicke and Soffa Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Kulicke and Soffa Industries and Sumco, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kulicke and Soffa Industries | 0 | 3 | 1 | 0 | 2.25 |
| Sumco | 0 | 0 | 0 | 0 | 0.00 |
Insider and Institutional Ownership
98.2% of Kulicke and Soffa Industries shares are held by institutional investors. Comparatively, 0.0% of Sumco shares are held by institutional investors. 0.0% of Kulicke and Soffa Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Kulicke and Soffa Industries and Sumco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kulicke and Soffa Industries | -7.94% | 0.61% | 0.47% |
| Sumco | 6.66% | 4.15% | 2.38% |
Risk and Volatility
Kulicke and Soffa Industries has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Sumco has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
Earnings and Valuation
This table compares Kulicke and Soffa Industries and Sumco”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kulicke and Soffa Industries | $742.49 million | 3.54 | $57.15 million | ($1.04) | -46.32 |
| Sumco | $3.04 billion | 1.09 | $453.58 million | $1.03 | 18.31 |
Sumco has higher revenue and earnings than Kulicke and Soffa Industries. Kulicke and Soffa Industries is trading at a lower price-to-earnings ratio than Sumco, indicating that it is currently the more affordable of the two stocks.
Summary
Kulicke and Soffa Industries beats Sumco on 9 of the 15 factors compared between the two stocks.
About Kulicke and Soffa Industries
Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS). The company offers ball bonding equipment, wafer level bonding equipment, wedge bonding equipment; and advanced display, die-attach, and thermocompression systems and solutions, as well as tools, spares and services for equipment. 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, foundry service providers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. The company was founded in 1951 and is headquartered in Fort Washington, Pennsylvania.
About Sumco
Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.
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.
