ASML vs Tokyo Electron Which Is More Profitable?

ASML and Tokyo Electron are two leading companies in the semiconductor manufacturing equipment industry. ASML, based in the Netherlands, is known for its advanced lithography systems used in the production of semiconductor chips. Tokyo Electron, based in Japan, specializes in semiconductor production equipment such as etching and deposition systems. Both companies have seen significant growth in recent years as demand for semiconductor products continues to rise. Investors may consider factors such as technological innovation, market share, and financial performance when comparing ASML and Tokyo Electron stocks.

ASML or Tokyo Electron?

When comparing ASML and Tokyo Electron, 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 Tokyo Electron.

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 Tokyo Electron 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, Tokyo Electron reports a 5-year dividend growth of 132.79% year and a payout ratio of 26.72%.

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 Tokyo Electron's P/E ratio at 13.05. 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 Tokyo Electron's P/B ratio is 3.13.

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 Tokyo Electron's is 1.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and Tokyo Electron's ROE at 25.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $716.22 for ASML and $77.85 for Tokyo Electron. Over the past year, ASML's prices ranged from $645.45 to $1110.09, with a yearly change of 71.99%. Tokyo Electron's prices fluctuated between $68.83 and $134.91, with a yearly change of 96.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.