Analyzing BE Semiconductor Industries (OTCMKTS:BESIY) & GlobalFoundries (NASDAQ:GFS)

BE Semiconductor Industries (OTCMKTS:BESIY) and GlobalFoundries (NASDAQ:GFS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Risk and Volatility

BE Semiconductor Industries has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for BE Semiconductor Industries and GlobalFoundries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BE Semiconductor Industries	0	0	0	0	0.00
GlobalFoundries	0	9	6	0	2.40

GlobalFoundries has a consensus target price of $50.21, suggesting a potential upside of 13.61%. Given GlobalFoundries’ stronger consensus rating and higher probable upside, analysts clearly believe GlobalFoundries is more favorable than BE Semiconductor Industries.

Profitability

This table compares BE Semiconductor Industries and GlobalFoundries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BE Semiconductor Industries	28.93%	39.36%	18.75%
GlobalFoundries	10.95%	6.87%	4.29%

Earnings & Valuation

This table compares BE Semiconductor Industries and GlobalFoundries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BE Semiconductor Industries	$626.45 million	N/A	$191.66 million	$2.43	54.77
GlobalFoundries	$6.77 billion	3.60	$1.02 billion	$1.34	32.99

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

Summary

BE Semiconductor Industries beats GlobalFoundries on 6 of the 11 factors compared between the two stocks.

About BE Semiconductor Industries

BE Semiconductor Industries N.V. engages in the development, manufacture, marketing, sale, and service of semiconductor assembly equipment for the semiconductor and electronics industries in China, the United States, Malaysia, Ireland, Korea, Taiwan, Thailand, Other Asia Pacific and Europe, and internationally. It operates through three segments: Die Attach, Packaging, and Plating. The company's principal products include die attach equipment, such as single chip, multi-chip, multi module, flip chip, thermal compression bonding, fan out wafer level packaging, hybrid and embedded bridge die bonding, and die sorting systems; and packaging equipment, including conventional, ultra-thin, and wafer level molding, as well as trim and form, and singulation systems. It also provides plating equipment, such as tin, copper, and precious metal and solar plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company's principal brand names include Datacon, Esec, Fico, and Meco. It offers its products primarily to multinational chip manufacturers, assembly subcontractors, and electronics and industrial companies. BE Semiconductor Industries N.V. was incorporated in 1995 and is headquartered in Duiven, the Netherlands.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.