Head-To-Head Survey: United Microelectronics (NYSE:UMC) and ams-OSRAM (OTCMKTS:AUKUF)

United Microelectronics (NYSE:UMC) and ams-OSRAM (OTCMKTS:AUKUF) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

5.1% of United Microelectronics shares are owned by institutional investors. Comparatively, 38.1% of ams-OSRAM shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

United Microelectronics pays an annual dividend of $0.35 per share and has a dividend yield of 4.3%. ams-OSRAM pays an annual dividend of $0.21 per share and has a dividend yield of 2.1%. United Microelectronics pays out 50.0% of its earnings in the form of a dividend. ams-OSRAM pays out 16.0% 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 United Microelectronics and ams-OSRAM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Microelectronics	23.90%	14.80%	9.41%
ams-OSRAM	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for United Microelectronics and ams-OSRAM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Microelectronics	0	1	2	0	2.67
ams-OSRAM	0	0	0	0	N/A

United Microelectronics currently has a consensus price target of $8.90, indicating a potential upside of 8.80%. Given United Microelectronics’ higher probable upside, analysts clearly believe United Microelectronics is more favorable than ams-OSRAM.

Earnings and Valuation

This table compares United Microelectronics and ams-OSRAM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Microelectronics	$223.46 billion	0.09	$1.95 billion	$0.70	11.69
ams-OSRAM	N/A	N/A	N/A	$1.30	7.50

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

Summary

United Microelectronics beats ams-OSRAM on 9 of the 12 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG was founded in 1981 and is headquartered in Premstätten, Austria.