Critical Analysis: Onsemi (NASDAQ:ON) vs. Amkor Technology (NASDAQ:AMKR)

Onsemi (NASDAQ:ON) and Amkor Technology (NASDAQ:AMKR) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Onsemi and Amkor Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onsemi	$7.38 billion	3.87	$2.18 billion	$4.03	16.65
Amkor Technology	$6.44 billion	1.01	$359.81 million	$1.48	17.82

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

Analyst Ratings

This is a summary of recent recommendations for Onsemi and Amkor Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onsemi	2	5	16	0	2.61
Amkor Technology	0	3	5	0	2.63

Onsemi presently has a consensus price target of $85.87, suggesting a potential upside of 27.95%. Amkor Technology has a consensus price target of $36.29, suggesting a potential upside of 37.55%. Given Amkor Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Amkor Technology is more favorable than Onsemi.

Institutional and Insider Ownership

97.7% of Onsemi shares are owned by institutional investors. Comparatively, 42.8% of Amkor Technology shares are owned by institutional investors. 0.3% of Onsemi shares are owned by company insiders. Comparatively, 31.4% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Onsemi has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares Onsemi and Amkor Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onsemi	23.80%	22.38%	13.57%
Amkor Technology	5.68%	8.98%	5.35%

Summary

Onsemi beats Amkor Technology on 9 of the 14 factors compared between the two stocks.

About Onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu

About Amkor Technology

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.