Analyzing Kulicke and Soffa Industries (NASDAQ:KLIC) and Viavi Solutions (NASDAQ:VIAV)

Kulicke and Soffa Industries (NASDAQ:KLICGet Rating) and Viavi Solutions (NASDAQ:VIAVGet Rating) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Kulicke and Soffa Industries and Viavi Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kulicke and Soffa Industries 28.33% 46.89% 32.98%
Viavi Solutions -0.23% 22.22% 8.63%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kulicke and Soffa Industries and Viavi Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kulicke and Soffa Industries 0 2 2 0 2.50
Viavi Solutions 0 2 1 0 2.33

Kulicke and Soffa Industries currently has a consensus target price of $79.00, suggesting a potential upside of 83.93%. Viavi Solutions has a consensus target price of $19.67, suggesting a potential upside of 50.01%. Given Kulicke and Soffa Industries’ stronger consensus rating and higher probable upside, research analysts plainly believe Kulicke and Soffa Industries is more favorable than Viavi Solutions.

Risk & Volatility

Kulicke and Soffa Industries has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kulicke and Soffa Industries and Viavi Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kulicke and Soffa Industries $1.52 billion 1.67 $367.16 million $7.86 5.46
Viavi Solutions $1.20 billion 2.49 $46.10 million ($0.03) -437.00

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

Institutional and Insider Ownership

97.0% of Kulicke and Soffa Industries shares are owned by institutional investors. Comparatively, 93.8% of Viavi Solutions shares are owned by institutional investors. 2.5% of Kulicke and Soffa Industries shares are owned by insiders. Comparatively, 1.6% of Viavi Solutions shares are owned 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.

Summary

Kulicke and Soffa Industries beats Viavi Solutions on 12 of the 13 factors compared between the two stocks.

About Kulicke and Soffa Industries (Get Rating)

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through two segments, Capital Equipment, and Aftermarket Products and Services (APS). The company manufactures and sells advanced displays; die-transfer, flip-chip, and TCB advanced packaging products; ball bonder, die-attach, electronics assembly, lithography, wafer-level bonder, and wedge bonder products; consumables, such as capillaries, dicing blades, and wedge bonds; and auto offline programming, KNet PLUS, and new product introduction/manufacturing execution system software products. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.

About Viavi Solutions (Get Rating)

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, government, and avionics customers worldwide. The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP) segments. The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and instrumentation for communication and safety. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The OSP segment offers optical products for anti-counterfeiting, consumer and industrial, government, automotive, and industrial markets. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1923 and is headquartered in Scottsdale, Arizona.

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