Head-To-Head Analysis: Adesto Technologies (NASDAQ:IOTS) & ASE Technology (NASDAQ:ASX)

ASE Technology (NYSE:ASX) and Adesto Technologies (NASDAQ:IOTS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares ASE Technology and Adesto Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASE Technology 4.44% 8.60% 3.34%
Adesto Technologies -22.73% -23.38% -8.97%

Valuation and Earnings

This table compares ASE Technology and Adesto Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ASE Technology $13.56 billion 0.72 $570.40 million $0.25 18.16
Adesto Technologies $118.17 million 3.32 -$26.86 million N/A N/A

ASE Technology has higher revenue and earnings than Adesto Technologies.

Risk & Volatility

ASE Technology has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Adesto Technologies has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for ASE Technology and Adesto Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASE Technology 0 0 4 0 3.00
Adesto Technologies 0 7 1 0 2.13

Adesto Technologies has a consensus target price of $11.96, indicating a potential downside of 4.61%. Given Adesto Technologies’ higher probable upside, analysts clearly believe Adesto Technologies is more favorable than ASE Technology.

Institutional & Insider Ownership

4.9% of ASE Technology shares are held by institutional investors. Comparatively, 85.1% of Adesto Technologies shares are held by institutional investors. 22.9% of ASE Technology shares are held by insiders. Comparatively, 12.4% of Adesto Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

ASE Technology beats Adesto Technologies on 10 of the 13 factors compared between the two stocks.

ASE Technology Company Profile

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services (EMS) in the United States, Taiwan, Asia, Europe, and internationally. The company offers packaging services, including flip-chip ball grid array (BGA), flip-chip chip scale package (fcCSP), advanced chip scale packages (aCSP), quad flat packages, thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, and 3D chip packages; stacked die solutions in various package types; and copper and silver wire bonding solutions, as well as module-based solutions. It also provides advanced packages, such as flip-chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip-chip package in package and package on package (POP); advanced single sided substrate; high-bandwidth POP; fan-out wafer level packaging; SESUB; and substrate interposer packages. In addition, the company offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, it provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services. Additionally, the company offers develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, financing, investment advisory, and warehousing management services; and manufactures computer assistance systems and related peripherals, electronic components, communication peripherals, telecommunications equipment, and motherboards. The company serves customers in communication, computing, and consumer electronics/industrial/automotive sectors. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.

Adesto Technologies Company Profile

Adesto Technologies Corporation, together with its subsidiaries, provides application-specific semiconductors and embedded systems that offer the building blocks of Internet of Things (IoT) edge devices operating on networks worldwide. The company's portfolio of semiconductor and embedded technologies are optimized for connected IoT devices and systems used in industrial, consumer, communications, and medical applications. Its offerings enable customers to differentiate their IoT systems and product designs. The company's technology is used in various connected products, such as smart utility meters, wearable fitness trackers and medical monitors, home automation, building control systems, fleet management systems, and satellite communications applications. Its products portfolio includes IoT edge servers, routers, network nodes, and communication modules, as well as analog, digital, and non-volatile memory technologies, application-specific integrated circuits distributed network systems, and IP cores. The company also provides software, software development kits, tools, and system solutions to help speed time to market for customers. Its solutions enable seamless access to data, allowing for intelligent control of things in today's connected world. Adesto Technologies Corporation was incorporated in 2006 and is headquartered in Santa Clara, California.

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