Financial Analysis: Kulicke and Soffa Industries (NASDAQ:KLIC) and Navitas Semiconductor (NASDAQ:NVTS)

Kulicke and Soffa Industries (NASDAQ:KLICGet Free Report) and Navitas Semiconductor (NASDAQ:NVTSGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Insider & Institutional Ownership

98.2% of Kulicke and Soffa Industries shares are held by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are held by institutional investors. 0.0% of Kulicke and Soffa Industries shares are held by company insiders. Comparatively, 36.8% of Navitas Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Kulicke and Soffa Industries and Navitas Semiconductor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kulicke and Soffa Industries $742.49 million 3.74 $57.15 million $0.90 54.70
Navitas Semiconductor $79.46 million 10.49 -$145.43 million ($0.88) -5.28

Kulicke and Soffa Industries has higher revenue and earnings than Navitas Semiconductor. Navitas Semiconductor 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.

Volatility & Risk

Kulicke and Soffa Industries has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500.

Profitability

This table compares Kulicke and Soffa Industries and Navitas Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kulicke and Soffa Industries 7.03% 8.55% 6.66%
Navitas Semiconductor -183.04% -18.81% -15.21%

Analyst Ratings

This is a summary of current ratings and price targets for Kulicke and Soffa Industries and Navitas Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kulicke and Soffa Industries 0 1 2 0 2.67
Navitas Semiconductor 0 3 3 0 2.50

Kulicke and Soffa Industries currently has a consensus target price of $62.00, suggesting a potential upside of 25.94%. Navitas Semiconductor has a consensus target price of $9.82, suggesting a potential upside of 111.11%. Given Navitas Semiconductor’s higher possible upside, analysts plainly believe Navitas Semiconductor is more favorable than Kulicke and Soffa Industries.

Summary

Kulicke and Soffa Industries beats Navitas Semiconductor on 9 of the 14 factors compared between the two stocks.

About Kulicke and Soffa Industries

(Get Free Report)

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS). The company offers ball bonding equipment, wafer level bonding equipment, wedge bonding equipment; and advanced display, die-attach, and thermocompression systems and solutions, as well as tools, spares and services for equipment. 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, foundry service providers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. The company was founded in 1951 and is headquartered in Fort Washington, Pennsylvania.

About Navitas Semiconductor

(Get Free Report)

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company's products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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