ASML vs ASM Technologies Which Is Stronger?

ASML and ASM Technologies are two prominent companies in the semiconductor industry that are often compared by investors. ASML, headquartered in the Netherlands, is a leading supplier of photolithography machines used in the production of integrated circuits. ASM Technologies, based in Singapore, provides equipment and solutions for the semiconductor and electronics industries. Both stocks are highly sought after by investors due to their strong market positions and potential for growth in the ever-evolving technology sector. This comparison will delve into the key differences and similarities between ASML and ASM Technologies stocks to help investors make informed decisions.

ASML or ASM Technologies?

When comparing ASML and ASM Technologies, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ASML and ASM Technologies.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ASML has a dividend yield of 0.9%, while ASM Technologies has a dividend yield of 0.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%. On the other hand, ASM Technologies reports a 5-year dividend growth of -0.33% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ASML P/E ratio at 38.12 and ASM Technologies's P/E ratio at 531.04. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASML P/B ratio is 16.35 while ASM Technologies's P/B ratio is 11.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASML has seen a 5-year revenue growth of 1.71%, while ASM Technologies's is 1.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and ASM Technologies's ROE at 3.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $707.08 for ASML and ₹1421.25 for ASM Technologies. Over the past year, ASML's prices ranged from $645.45 to $1110.09, with a yearly change of 71.99%. ASM Technologies's prices fluctuated between ₹49.20 and ₹1456.00, with a yearly change of 2859.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.