ASML vs ATI Which Is a Smarter Choice?

ASML and ATI are two leading companies in the semiconductor industry, each known for their advanced technology and innovative products. ASML, a Dutch company, specializes in lithography equipment used in the production of integrated circuits. On the other hand, ATI, an American company, focuses on graphics processing units for gaming and professional applications. Both companies have seen significant growth in recent years, but investors may want to consider the differences in their business models and market potential when evaluating their stocks.

ASML or ATI?

When comparing ASML and ATI, 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 ATI.

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 1.11%, while ATI has a dividend yield of -%. 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, ATI reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.25%.

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 37.34 and ATI's P/E ratio at 19.21. 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 16.02 while ATI's P/B ratio is 4.04.

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 1.72%, while ATI's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and ATI's ROE at 26.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $691.53 for ASML and $55.88 for ATI. Over the past year, ASML's prices ranged from $654.77 to $1110.09, with a yearly change of 69.54%. ATI's prices fluctuated between $38.04 and $68.92, with a yearly change of 81.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.