Comparing EMCORE (EMKR) & Advantest (ATEYY)

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

Earnings & Valuation

This table compares EMCORE and Advantest’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EMCORE $122.89 million 1.13 $8.23 million $0.39 12.95
Advantest $1.87 billion 1.99 $162.92 million $0.84 25.23

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

Risk & Volatility

EMCORE has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Advantest has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Dividends

Advantest pays an annual dividend of $0.21 per share and has a dividend yield of 1.0%. EMCORE does not pay a dividend. Advantest pays out 25.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

76.6% of EMCORE shares are held by institutional investors. Comparatively, 0.0% of Advantest shares are held by institutional investors. 2.0% of EMCORE shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for EMCORE and Advantest, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE 0 0 3 0 3.00
Advantest 0 0 0 0 N/A

EMCORE presently has a consensus price target of $6.33, suggesting a potential upside of 25.41%. Given EMCORE’s higher probable upside, analysts plainly believe EMCORE is more favorable than Advantest.

Profitability

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

Net Margins Return on Equity Return on Assets
EMCORE 1.44% 1.72% 1.46%
Advantest 8.81% 15.82% 7.87%

Summary

Advantest beats EMCORE on 10 of the 15 factors compared between the two stocks.

About EMCORE

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in California. It offers broadband products comprising cable television; laser, receiver, and photodetector component products; radio frequency over glass FTTP products; satellite/microwave communications products; and wireless communications products. The company also provides chip devices products, including high-power gain chips, GPON fiber-to-the-premises, and data center chip products; and navigation systems products, such as fiber optic gyroscope products and inertial measurement units and navigation systems products. It sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.

About Advantest

Advantest Corporation manufactures and sells semiconductor and component test system products and mechatronics-related products. It operates through Semiconductor and Component Test System; Mechatronics System; and Services, Support and Others segments. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry. This segment offers test systems for SoC semiconductors for use in non-memory semiconductor devices; and test systems for memory semiconductors for use in memory semiconductor devices. The Mechatronics System segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured. This segment also engages in the operations related to nano-technology products. The Services, Support and Others segment provides customer solutions for the semiconductor and component test system and mechatronics system segments; and support services. This segment is also involved in the equipment lease business and others. In addition, the company engages in research and development activities measuring and testing technologies; and sale of used products. Advantest Corporation serves fabless semiconductor companies, foundries, and test houses, as well as industrial, design, and manufacturing companies in Japan, Korea, the People's Republic of China, Taiwan, Singapore, the Americas, and Europe. The company was founded in 1954 and is headquartered in Tokyo, Japan.

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