ASML vs GLOBALFOUNDRIES Which Is More Reliable?

ASML and GLOBALFOUNDRIES are two prominent companies in the semiconductor industry, both providing essential technology and solutions for the manufacturing of advanced microchips. ASML is a Dutch company known for its cutting-edge lithography systems, while GLOBALFOUNDRIES is a leading semiconductor foundry with a global presence. Investors are closely watching these two stocks as they navigate the rapidly evolving semiconductor market, with both companies poised for growth and innovation in the years to come.

ASML or GLOBALFOUNDRIES?

When comparing ASML and GLOBALFOUNDRIES, 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 GLOBALFOUNDRIES.

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 1.14%, while GLOBALFOUNDRIES 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, GLOBALFOUNDRIES reports a 5-year dividend growth of 0.00% 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 36.19 and GLOBALFOUNDRIES's P/E ratio at 31.55. 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 15.53 while GLOBALFOUNDRIES's P/B ratio is 2.03.

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 GLOBALFOUNDRIES's is 0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and GLOBALFOUNDRIES's ROE at 6.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $656.78 for ASML and $41.42 for GLOBALFOUNDRIES. Over the past year, ASML's prices ranged from $654.77 to $1110.09, with a yearly change of 69.54%. GLOBALFOUNDRIES's prices fluctuated between $35.85 and $62.61, with a yearly change of 74.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.