BE Semiconductor Industries (OTCMKTS:BESIY) & ASM International (OTCMKTS:ASMIY) Critical Review

BE Semiconductor Industries (OTCMKTS:BESIY) and ASM International (OTCMKTS:ASMIY) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BE Semiconductor Industries	28.42%	46.44%	18.48%
ASM International	31.94%	22.22%	16.33%

Earnings & Valuation

This table compares BE Semiconductor Industries and ASM International”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	$668.88 million	23.75	$148.94 million	$3.05	71.83
ASM International	$3.59 billion	13.26	$818.79 million	$25.50	38.18

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BE Semiconductor Industries and ASM International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BE Semiconductor Industries	0	2	5	2	3.00
ASM International	1	1	5	1	2.75

Insider and Institutional Ownership

0.0% of ASM International shares are held by institutional investors. 1.6% of BE Semiconductor Industries shares are held by company insiders. Comparatively, 24.4% of ASM International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

BE Semiconductor Industries pays an annual dividend of $1.57 per share and has a dividend yield of 0.7%. ASM International pays an annual dividend of $3.23 per share and has a dividend yield of 0.3%. BE Semiconductor Industries pays out 51.5% of its earnings in the form of a dividend. ASM International pays out 12.7% 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.

Volatility and Risk

BE Semiconductor Industries has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, ASM International has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

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 ASM International

ASM International NV, together with its subsidiaries, engages in the research, development, manufacture, marketing, and servicing of equipment and materials used to produce semiconductor devices in Europe, the United States, and Asia. The company’s products include wafer processing deposition systems for atomic layer deposition (ALD), epitaxy, silicon carbide, plasma enhanced chemical vapor deposition (PECVD), and vertical furnace systems, including low pressure chemical vapor deposition (LPCVD), diffusion, and oxidation products, as well as provides spare parts and support services. It also manufactures and sells equipment, which is used in wafer processing, encompassing the fabrication steps in which silicon wafers are layered with semiconductor devices. The company offers its products to semiconductor manufacturers. The company was formerly known as Advanced Semiconductor Materials International NV. ASM International NV was incorporated in 1968 and is headquartered in Almere, the Netherlands.