Critical Comparison: Everspin Technologies (NASDAQ:MRAM) vs. Amkor Technology (NASDAQ:AMKR)

Everspin Technologies (NASDAQ:MRAM) and Amkor Technology (NASDAQ:AMKR) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Everspin Technologies and Amkor Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everspin Technologies	0	0	2	0	3.00
Amkor Technology	0	5	5	0	2.50

Everspin Technologies presently has a consensus target price of $9.00, suggesting a potential upside of 64.84%. Amkor Technology has a consensus target price of $31.50, suggesting a potential upside of 55.40%. Given Everspin Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Everspin Technologies is more favorable than Amkor Technology.

Institutional & Insider Ownership

44.7% of Everspin Technologies shares are held by institutional investors. Comparatively, 42.8% of Amkor Technology shares are held by institutional investors. 6.1% of Everspin Technologies shares are held by insiders. Comparatively, 31.4% of Amkor Technology shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everspin Technologies	2.85%	2.74%	2.27%
Amkor Technology	5.60%	8.59%	5.14%

Valuation and Earnings

This table compares Everspin Technologies and Amkor Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Technologies	$53.87 million	2.23	$9.05 million	$0.02	273.00
Amkor Technology	$6.32 billion	0.79	$354.01 million	$1.43	14.17

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

Volatility & Risk

Everspin Technologies has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Summary

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

About Everspin Technologies

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

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.