Kulicke and Soffa Industries (NASDAQ:KLIC – Get Free Report) and United Microelectronics (NYSE:UMC – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Kulicke and Soffa Industries and United Microelectronics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kulicke and Soffa Industries | 0 | 2 | 3 | 0 | 2.60 |
| United Microelectronics | 1 | 3 | 0 | 0 | 1.75 |
Kulicke and Soffa Industries currently has a consensus target price of $52.40, suggesting a potential upside of 18.20%. United Microelectronics has a consensus target price of $7.40, suggesting a potential upside of 27.04%. Given United Microelectronics’ higher possible upside, analysts plainly believe United Microelectronics is more favorable than Kulicke and Soffa Industries.
Volatility & Risk
Dividends
Kulicke and Soffa Industries pays an annual dividend of $0.82 per share and has a dividend yield of 1.8%. United Microelectronics pays an annual dividend of $0.35 per share and has a dividend yield of 6.0%. Kulicke and Soffa Industries pays out -66.7% of its earnings in the form of a dividend. United Microelectronics pays out 60.3% 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.
Profitability
This table compares Kulicke and Soffa Industries and United Microelectronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kulicke and Soffa Industries | -9.77% | -0.92% | -0.71% |
| United Microelectronics | 20.35% | 12.78% | 8.16% |
Insider & Institutional Ownership
98.2% of Kulicke and Soffa Industries shares are owned by institutional investors. Comparatively, 5.1% of United Microelectronics shares are owned by institutional investors. 0.0% of Kulicke and Soffa Industries shares are owned by insiders. Comparatively, 8.0% of United Microelectronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Kulicke and Soffa Industries and United Microelectronics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kulicke and Soffa Industries | $706.23 million | 3.38 | -$69.01 million | ($1.23) | -36.04 |
| United Microelectronics | $226.87 billion | 0.06 | $1.95 billion | $0.58 | 10.04 |
United Microelectronics has higher revenue and earnings than Kulicke and Soffa Industries. Kulicke and Soffa Industries is trading at a lower price-to-earnings ratio than United Microelectronics, indicating that it is currently the more affordable of the two stocks.
Summary
United Microelectronics beats Kulicke and Soffa Industries on 10 of the 16 factors compared between the two stocks.
About Kulicke and Soffa Industries
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 United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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