ASE Technology (NYSE:ASX) vs. SiTime (NASDAQ:SITM) Head-To-Head Contrast

ASE Technology (NYSE:ASX) and SiTime (NASDAQ:SITM) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for ASE Technology and SiTime, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASE Technology	0	0	2	0	3.00
SiTime	1	0	4	0	2.60

SiTime has a consensus price target of $232.00, suggesting a potential upside of 49.53%. Given SiTime’s higher possible upside, analysts clearly believe SiTime is more favorable than ASE Technology.

Valuation & Earnings

This table compares ASE Technology and SiTime”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASE Technology	$595.41 billion	0.04	$1.01 billion	$0.45	22.54
SiTime	$202.70 million	18.06	-$93.60 million	($4.05)	-38.31

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

Profitability

This table compares ASE Technology and SiTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASE Technology	5.44%	9.86%	4.59%
SiTime	-46.18%	-10.12%	-7.86%

Volatility & Risk

ASE Technology has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, SiTime has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Insider & Institutional Ownership

6.8% of ASE Technology shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 22.9% of ASE Technology shares are owned by insiders. Comparatively, 2.3% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

ASE Technology beats SiTime on 9 of the 14 factors compared between the two stocks.

About ASE Technology

ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.