ASMPT (OTCMKTS:ASMVF) vs. Advantest (OTCMKTS:ATEYY) Critical Comparison

Advantest (OTCMKTS:ATEYY) and ASMPT (OTCMKTS:ASMVF) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider & Institutional Ownership

0.0% of Advantest shares are owned by institutional investors. Comparatively, 25.1% of ASMPT shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantest	$3.37 billion	9.27	$429.80 million	$0.58	73.00
ASMPT	N/A	N/A	N/A	$2.23	5.62

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

Analyst Recommendations

This is a breakdown of recent recommendations for Advantest and ASMPT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantest	0	0	0	0	N/A
ASMPT	0	0	0	0	N/A

Dividends

Advantest pays an annual dividend of $0.14 per share and has a dividend yield of 0.3%. ASMPT pays an annual dividend of $0.85 per share and has a dividend yield of 6.8%. Advantest pays out 24.1% of its earnings in the form of a dividend. ASMPT pays out 38.1% 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.

Profitability

This table compares Advantest and ASMPT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantest	14.65%	18.20%	11.61%
ASMPT	N/A	N/A	N/A

Summary

Advantest beats ASMPT on 6 of the 9 factors compared between the two stocks.

About Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics related products in Japan, the Americas, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Services, Support and Others segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease and other businesses. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

About ASMPT

ASMPT Limited, an investment holding company, engages in the research, design, development, manufacture, and marketing of machine and tools used in the semiconductor and electronics assembly industries. It operates in two segments, Semiconductor Solutions and Surface Mount Technology Solutions. The Semiconductor Solutions segment offers wire and die bonders, encapsulation solutions, test handlers, clip bonders, CIS equipment, TCB and flip chip bonders, mold under fill, panel molding, silver sintering, and laser grooving and dicing. This segment also provides metrology, automated optical inspection, singulation, trim and form, inspection, and test and packing solutions. The Surface Mount Technology Solutions segment offers assembly line solutions; DEK printing systems; SIPLACE placement systems; and ASM smart factory tools and services. It also offers agency, logistics, marketing, and property investment services; develops, produces, markets, and sells execution systems software solutions; and trades in semiconductor and surface mount technology equipment. The company operates in Singapore, China, Germany, Austria, Hungary, Romania, France, the Czech Republic, Poland, the Netherland, the United States, Mexico, Canada, Malaysia, Taiwan, Korea, Thailand, Japan, India, Vietnam, the Philippines, and internationally. ASMPT Limited was formerly known as ASM Pacific Technology Limited and changed its name to ASMPT Limited in June 2022. The company was incorporated in 1975 and is headquartered in Singapore.