ASML (ASML) versus IHI (IHICY) Financial Analysis

ASML (NASDAQ: ASML) and IHI (OTCMKTS:IHICY) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Analyst Ratings

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This is a summary of recent recommendations and price targets for ASML and IHI, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASML 0 3 10 0 2.77
IHI 0 0 0 0 N/A

ASML presently has a consensus target price of $192.33, suggesting a potential downside of 3.47%. Given ASML’s higher probable upside, equities research analysts plainly believe ASML is more favorable than IHI.

Profitability

This table compares ASML and IHI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASML 24.28% 21.16% 12.43%
IHI N/A N/A N/A

Earnings & Valuation

This table compares ASML and IHI’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ASML $10.23 billion 8.30 $2.39 billion $5.57 35.65
IHI $13.75 billion 0.38 $48.79 million $0.14 60.50

ASML has higher earnings, but lower revenue than IHI. ASML is trading at a lower price-to-earnings ratio than IHI, indicating that it is currently the more affordable of the two stocks.

Dividends

ASML pays an annual dividend of $1.11 per share and has a dividend yield of 0.6%. IHI pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. ASML pays out 19.9% of its earnings in the form of a dividend. IHI pays out 57.1% 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.

Insider and Institutional Ownership

16.9% of ASML shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

ASML beats IHI on 11 of the 13 factors compared between the two stocks.

About ASML

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems consisting of lithography related systems primarily in the Netherlands, the United States, and Asia. It sells three categories of products, including DUV lithography, EUV lithography, and Holistic lithography solutions. The company offers TWINSCAN N)XT (DUV) systems for imaging wafers, which consists of systems that operate at a specific wavelength of the light source, such as i-line, krypton fluoride, and argon fluoride. It also provides TWINSCAN NXE (EUV) lithography systems, which are equipped with new EUV light source technology and a new optical technology that uses reflective mirrors rather than the traditional lenses; and TWINSCAN XT, YieldStar, and PAS 5500. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

About IHI

IHI Corporation, together with its subsidiaries, manufactures and sells machinery and equipment in Japan, the Americas, Europe, the Asia Pacific, and internationally. It offers boilers, components for nuclear power plants, facilities for nuclear fuel cycle plants, gas turbine/diesel engines/gas engines, environment responsive systems, and lithium-ion batteries. The company also provides LNG receiving terminals and storage tanks; equipment for plants and reactors; and engineering, procurement, construction, and start-up services for process and pharmaceutical plants. In addition, it offers bridges, water gates, and steel structures; shield tunneling machines, concrete construction materials, automated people movers, light rail transit, and other products; and security and environmental monitoring systems, as well as constructs and refurbishes offshore units and marine structures. Further, the company provides air and process gas compressors, separators, dehydrators, filters, and cryogenic products; turbochargers for vehicles and ships; parking and logistics systems, materials handling equipment, and construction machinery; steelmaking equipment, such as industrial furnaces and stepping cylinders; thermal and surface treatment equipment, factory automation systems, slitters, rubber and film calender lines, pulp and paper machinery, lubricating systems, and grid scale energy storage systems; and agricultural machines, motors, and lawn mowers. Additionally, it offers aero engines and air traffic control systems; and rockets, rocket and satellite propulsion systems, systems for satellites, space station-related equipment, ground test facilities, sample containers, etc., as well as engage in real estate rental and sales business. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd. and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan.

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