Analyzing BE Semiconductor Industries (OTCMKTS:BESIY) and ARM (NASDAQ:ARM)

BE Semiconductor Industries (OTCMKTS:BESIY) and ARM (NASDAQ:ARM) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BE Semiconductor Industries and ARM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BE Semiconductor Industries	0	0	0	0	0.00
ARM	2	6	18	1	2.67

ARM has a consensus price target of $150.32, indicating a potential upside of 7.08%. Given ARM’s stronger consensus rating and higher probable upside, analysts clearly believe ARM is more favorable than BE Semiconductor Industries.

Risk & Volatility

BE Semiconductor Industries has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, ARM has a beta of 4.67, meaning that its stock price is 367% more volatile than the S&P 500.

Profitability

This table compares BE Semiconductor Industries and ARM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BE Semiconductor Industries	28.93%	39.36%	18.75%
ARM	18.13%	13.69%	9.70%

Valuation and Earnings

This table compares BE Semiconductor Industries and ARM”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BE Semiconductor Industries	$626.45 million	N/A	$191.66 million	$2.43	50.35
ARM	$3.23 billion	45.50	$306.00 million	$0.60	233.97

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

Insider & Institutional Ownership

7.5% of ARM shares are held by institutional investors. 1.6% of BE Semiconductor Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

ARM beats BE Semiconductor Industries on 9 of the 14 factors compared between the two stocks.

About BE Semiconductor Industries

BE Semiconductor Industries N.V. engages in the development, manufacture, marketing, sale, and service of semiconductor assembly equipment for the semiconductor and electronics industries in China, the United States, Malaysia, Ireland, Korea, Taiwan, Thailand, Other Asia Pacific and Europe, and internationally. It operates through three segments: Die Attach, Packaging, and Plating. The company's principal products include die attach equipment, such as single chip, multi-chip, multi module, flip chip, thermal compression bonding, fan out wafer level packaging, hybrid and embedded bridge die bonding, and die sorting systems; and packaging equipment, including conventional, ultra-thin, and wafer level molding, as well as trim and form, and singulation systems. It also provides plating equipment, such as tin, copper, and precious metal and solar plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company's principal brand names include Datacon, Esec, Fico, and Meco. It offers its products primarily to multinational chip manufacturers, assembly subcontractors, and electronics and industrial companies. BE Semiconductor Industries N.V. was incorporated in 1995 and is headquartered in Duiven, the Netherlands.

About ARM

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.