ASML vs Intel Which Is More Attractive?

ASML and Intel are two prominent companies in the semiconductor industry, both highly regarded for their technological innovations and market dominance. ASML, a Dutch company, is known for its advanced lithography systems used in the production of computer chips, while Intel is one of the world's largest semiconductor manufacturers. Investors are closely watching the performance of these two stocks, as they are pivotal players in the rapidly growing semiconductor market. Analysts are predicting a tight competition between ASML and Intel in the coming months as they continue to push the boundaries of technological advancement in the industry.

ASML or Intel?

When comparing ASML and Intel, 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 Intel.

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 0.89%, while Intel has a dividend yield of 1.84%. 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, Intel reports a 5-year dividend growth of -9.22% year and a payout ratio of -13.32%.

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 38.78 and Intel's P/E ratio at -5.47. 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 16.63 while Intel's P/B ratio is 0.88.

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 Intel's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and Intel's ROE at -14.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $716.22 for ASML and $20.25 for Intel. Over the past year, ASML's prices ranged from $645.45 to $1110.09, with a yearly change of 71.99%. Intel's prices fluctuated between $18.51 and $51.28, with a yearly change of 177.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.