Head-To-Head Comparison: Camtek (NASDAQ:CAMT) vs. Entegris (NASDAQ:ENTG)

Entegris (NASDAQ:ENTG) and Camtek (NASDAQ:CAMT) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Dividends

Entegris pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Camtek pays an annual dividend of $1.33 per share and has a dividend yield of 1.3%. Entegris pays out 15.6% of its earnings in the form of a dividend. Camtek pays out 50.4% 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.

Valuation and Earnings

This table compares Entegris and Camtek”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entegris	$3.52 billion	6.64	$235.60 million	$2.56	59.85
Camtek	$544.32 million	9.04	$50.72 million	$2.64	39.93

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

Volatility and Risk

Entegris has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Camtek has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Entegris and Camtek, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entegris	1	0	11	3	3.07
Camtek	1	6	7	0	2.43

Entegris currently has a consensus price target of $187.17, indicating a potential upside of 22.16%. Camtek has a consensus price target of $164.00, indicating a potential upside of 55.57%. Given Camtek’s higher probable upside, analysts clearly believe Camtek is more favorable than Entegris.

Institutional and Insider Ownership

41.9% of Camtek shares are owned by institutional investors. 0.5% of Entegris shares are owned by company insiders. Comparatively, 79.4% of Camtek shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Entegris and Camtek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entegris	11.14%	13.86%	6.77%
Camtek	24.56%	21.38%	11.12%

Summary

Camtek beats Entegris on 10 of the 17 factors compared between the two stocks.

About Entegris

Entegris, Inc. supplies advanced materials and process solutions used in semiconductor manufacturing and other high-technology industries. Its products help customers control contamination and manage materials throughout complex manufacturing processes. The company’s offerings include specialty chemicals and gases, filtration and purification systems, fluid and gas handling products, and wafer handling and storage solutions. Entegris also provides related services and technologies designed to support the production of semiconductor devices and other advanced products.

About Camtek

Camtek Ltd. develops, manufactures and sells inspection and metrology equipment used in semiconductor manufacturing. Its systems help manufacturers detect defects and measure features on wafers and other components, supporting quality control as semiconductor devices become smaller and more complex. The company’s products serve applications including advanced packaging, memory, image sensors and other semiconductor processes. Camtek combines optical inspection hardware with software to analyze production data and identify issues during manufacturing.