Financial Survey: Qnity Electronics (NYSE:Q) vs. ASML (NASDAQ:ASML)

ASML (NASDAQ:ASML) and Qnity Electronics (NYSE:Q) are both large-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Earnings and Valuation

This table compares ASML and Qnity Electronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASML	$35.33 billion	20.17	$10.87 billion	$32.14	56.39
Qnity Electronics	$5.21 billion	5.03	$692.00 million	$2.80	44.71

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

Profitability

This table compares ASML and Qnity Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASML	30.11%	52.71%	22.10%
Qnity Electronics	11.25%	10.83%	6.26%

Dividends

ASML pays an annual dividend of $7.26 per share and has a dividend yield of 0.4%. Qnity Electronics pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. ASML pays out 22.6% of its earnings in the form of a dividend. Qnity Electronics pays out 11.4% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ASML and Qnity Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASML	3	5	18	3	2.72
Qnity Electronics	0	1	8	1	3.00

ASML presently has a consensus target price of $1,970.33, indicating a potential upside of 8.72%. Qnity Electronics has a consensus target price of $151.78, indicating a potential upside of 21.24%. Given Qnity Electronics’ stronger consensus rating and higher probable upside, analysts clearly believe Qnity Electronics is more favorable than ASML.

Institutional & Insider Ownership

26.1% of ASML shares are held by institutional investors. 0.2% of Qnity Electronics shares are held by company insiders. 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 Qnity Electronics on 12 of the 16 factors compared between the two stocks.

About ASML

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. 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 Qnity Electronics

Qnity Electronics Inc. is a premier technology solution provider across the semiconductor value chain. Qnity Electronics Inc. is based in WILMINGTON, Del.