Comparing Disco (OTCMKTS:DSCSY) & ACM Research (NASDAQ:ACMR)

Disco (OTCMKTS:DSCSY) and ACM Research (NASDAQ:ACMR) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Disco and ACM Research, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	0	1	1	3.50
ACM Research	0	1	5	0	2.83

ACM Research has a consensus price target of $122.75, indicating a potential upside of 118.72%. Given ACM Research’s higher possible upside, analysts clearly believe ACM Research is more favorable than Disco.

Profitability

This table compares Disco and ACM Research’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Disco	31.65%	26.03%	20.56%
ACM Research	14.48%	4.08%	2.80%

Valuation and Earnings

This table compares Disco and ACM Research”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Disco	$2.90 billion	12.81	$894.45 million	$0.87	39.37
ACM Research	$901.31 million	4.03	$94.08 million	$2.10	26.73

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

Institutional and Insider Ownership

0.0% of Disco shares are owned by institutional investors. Comparatively, 66.7% of ACM Research shares are owned by institutional investors. 24.4% of ACM Research shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Disco has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, ACM Research has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500.

Summary

Disco beats ACM Research on 9 of the 15 factors compared between the two stocks.

About Disco

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.

About ACM Research

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the SAPS, TEBO, ULTRA C, ULTRA Fn, Ultra ECP, Ultra ECP map, and Ultra ECP ap trademarks through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.