Financial Comparison: Amkor Technology (NASDAQ:AMKR) and Qualcomm (NASDAQ:QCOM)

Amkor Technology (NASDAQ:AMKR) and Qualcomm (NASDAQ:QCOM) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Amkor Technology and Qualcomm, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amkor Technology	0	7	4	0	2.36
Qualcomm	4	16	14	0	2.29

Amkor Technology presently has a consensus price target of $62.75, indicating a potential downside of 10.80%. Qualcomm has a consensus price target of $180.37, indicating a potential downside of 10.48%. Given Qualcomm’s higher probable upside, analysts plainly believe Qualcomm is more favorable than Amkor Technology.

Institutional & Insider Ownership

42.8% of Amkor Technology shares are owned by institutional investors. Comparatively, 74.4% of Qualcomm shares are owned by institutional investors. 26.4% of Amkor Technology shares are owned by company insiders. Comparatively, 0.1% of Qualcomm shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Amkor Technology has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500. Comparatively, Qualcomm has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Dividends

Amkor Technology pays an annual dividend of $0.33 per share and has a dividend yield of 0.5%. Qualcomm pays an annual dividend of $3.56 per share and has a dividend yield of 1.8%. Amkor Technology pays out 18.9% of its earnings in the form of a dividend. Qualcomm pays out 38.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amkor Technology has increased its dividend for 4 consecutive years and Qualcomm has increased its dividend for 23 consecutive years. Qualcomm is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amkor Technology	6.17%	9.88%	5.40%
Qualcomm	22.31%	42.11%	19.33%

Valuation & Earnings

This table compares Amkor Technology and Qualcomm”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amkor Technology	$6.71 billion	2.60	$373.89 million	$1.75	40.20
Qualcomm	$44.28 billion	4.80	$5.54 billion	$9.20	21.90

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

Summary

Qualcomm beats Amkor Technology on 12 of the 17 factors compared between the two stocks.

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.

About Qualcomm

Qualcomm Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.