ASML Holding NV (NASDAQ: ASML) and Brooks Automation (NASDAQ:BRKS) are both mid-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Risk and Volatility
ASML Holding NV has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Brooks Automation has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.
Valuation and Earnings
This table compares ASML Holding NV and Brooks Automation’s top-line revenue, earnings per share (EPS) and valuation.
ASML Holding NV has higher revenue and earnings than Brooks Automation. ASML Holding NV is trading at a lower price-to-earnings ratio than Brooks Automation, indicating that it is currently the more affordable of the two stocks.
This table compares ASML Holding NV and Brooks Automation’s net margins, return on equity and return on assets.
Institutional and Insider Ownership
16.1% of ASML Holding NV shares are held by institutional investors. Comparatively, 89.6% of Brooks Automation shares are held by institutional investors. 2.2% of Brooks Automation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
ASML Holding NV pays an annual dividend of $1.11 per share and has a dividend yield of 0.6%. Brooks Automation pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. ASML Holding NV pays out 22.0% of its earnings in the form of a dividend. Brooks Automation pays out 50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of recent ratings for ASML Holding NV and Brooks Automation, as provided by MarketBeat.
ASML Holding NV currently has a consensus target price of $176.17, indicating a potential downside of 0.67%. Brooks Automation has a consensus target price of $30.17, indicating a potential downside of 7.15%. Given ASML Holding NV’s stronger consensus rating and higher probable upside, equities analysts plainly believe ASML Holding NV is more favorable than Brooks Automation.
ASML Holding NV beats Brooks Automation on 12 of the 16 factors compared between the two stocks.
ASML Holding NV Company Profile
ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.
Brooks Automation Company Profile
Brooks Automation, Inc. is a provider of automation and cryogenic solutions for various applications and markets. The Company operates through two segments: Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers critical automated transport, vacuum and contamination controls solutions and services. Its product offerings include robots and integrated automation systems for handling of substrates. It is also a provider of cryogenic components to create vacuum and thermal stability within critical operating environments in the manufacturing process. It also offers equipment for automated contamination control, conditioning and metrology solutions for wafer and reticle carriers. The Brooks Life Science Systems segment offers sample life cycle management solutions that provide life science and bioscience customers with a range of sample management solutions for scientific research and support drug development.