Analyzing GCT Semiconductor (NYSE:GCTS) and Amkor Technology (NASDAQ:AMKR)

Amkor Technology (NASDAQ:AMKR) and GCT Semiconductor (NYSE:GCTS) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Amkor Technology and GCT Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amkor Technology	0	3	5	0	2.63
GCT Semiconductor	0	0	1	0	3.00

Amkor Technology presently has a consensus target price of $41.14, indicating a potential upside of 44.31%. GCT Semiconductor has a consensus target price of $8.00, indicating a potential upside of 205.34%. Given GCT Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe GCT Semiconductor is more favorable than Amkor Technology.

Valuation & Earnings

This table compares Amkor Technology and GCT Semiconductor’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amkor Technology	$6.40 billion	1.09	$359.81 million	$1.52	18.76
GCT Semiconductor	$16.03 million	7.50	-$2.00 million	N/A	N/A

Amkor Technology has higher revenue and earnings than GCT Semiconductor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amkor Technology	5.87%	9.41%	5.56%
GCT Semiconductor	N/A	N/A	-16.19%

Risk and Volatility

Amkor Technology has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

42.8% of Amkor Technology shares are held by institutional investors. Comparatively, 28.1% of GCT Semiconductor shares are held by institutional investors. 31.4% of Amkor Technology shares are held by insiders. Comparatively, 0.2% of GCT Semiconductor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Amkor Technology beats GCT Semiconductor on 9 of the 12 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 GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.