Contrasting Advantest (OTCMKTS:ATEYY) & Semiconductor Manufacturing International (OTCMKTS:SMICY)

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

Institutional & Insider Ownership

0.0% of Advantest shares are held by institutional investors. Comparatively, 0.1% of Semiconductor Manufacturing International shares are held by institutional investors. 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 Advantest and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantest 17.59% 22.99% 15.07%
Semiconductor Manufacturing International 7.64% 2.58% 1.54%

Valuation and Earnings

This table compares Advantest and Semiconductor Manufacturing International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advantest $2.56 billion 4.29 $512.94 million $2.61 21.74
Semiconductor Manufacturing International $3.12 billion 5.67 $234.68 million $0.21 83.33

Advantest has higher earnings, but lower revenue than Semiconductor Manufacturing International. Advantest is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Advantest and Semiconductor Manufacturing International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantest 0 0 2 0 3.00
Semiconductor Manufacturing International 1 1 0 1 2.33

Volatility & Risk

Advantest has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Summary

Advantest beats Semiconductor Manufacturing International on 8 of the 13 factors compared between the two stocks.

Advantest Company Profile

Advantest Corporation manufactures and sells semiconductor and component test system products and mechatronics-related products. It operates through Semiconductor and Component Test System; Mechatronics System; and Services, Support and Others segments. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry. This segment offers test systems for SoC semiconductors for use in non-memory semiconductor devices; and test systems for memory semiconductors for use in memory semiconductor devices. The Mechatronics System segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured. This segment also engages in the operations related to nano-technology products. The Services, Support and Others segment provides customer solutions for the semiconductor and component test system and mechatronics system segments; and support services. This segment is also involved in the equipment lease business and others. In addition, the company engages in research and development activities measuring and testing technologies; and sale of used products. Advantest Corporation serves fabless semiconductor companies, foundries, and test houses, as well as industrial, design, and manufacturing companies in Japan, Korea, the People's Republic of China, Taiwan, Singapore, the Americas, and Europe. The company was founded in 1954 and is headquartered in Tokyo, Japan.

Semiconductor Manufacturing International Company Profile

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, assembly and final testing of integrated circuits; and sales of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in the United States, Europe, and the Asia Pacific. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

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