Analyzing NVIDIA (NASDAQ:NVDA) and Amkor Technology (NASDAQ:AMKR)

Amkor Technology (NASDAQ:AMKR) and NVIDIA (NASDAQ:NVDA) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

42.8% of Amkor Technology shares are owned by institutional investors. Comparatively, 65.3% of NVIDIA shares are owned by institutional investors. 31.4% of Amkor Technology shares are owned by insiders. Comparatively, 4.2% of NVIDIA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Amkor Technology has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Profitability

This table compares Amkor Technology and NVIDIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amkor Technology	5.68%	8.98%	5.35%
NVIDIA	55.69%	114.83%	76.61%

Earnings and Valuation

This table compares Amkor Technology and NVIDIA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amkor Technology	$6.50 billion	0.85	$359.81 million	$1.48	15.21
NVIDIA	$60.92 billion	55.82	$29.76 billion	$2.54	54.64

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Amkor Technology and NVIDIA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amkor Technology	0	5	5	0	2.50
NVIDIA	0	3	37	2	2.98

Amkor Technology currently has a consensus target price of $31.50, indicating a potential upside of 39.94%. NVIDIA has a consensus target price of $168.21, indicating a potential upside of 21.14%. Given Amkor Technology’s higher probable upside, equities analysts plainly believe Amkor Technology is more favorable than NVIDIA.

Dividends

Amkor Technology pays an annual dividend of $0.33 per share and has a dividend yield of 1.5%. NVIDIA pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Amkor Technology pays out 22.3% of its earnings in the form of a dividend. NVIDIA pays out 1.6% 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.

Summary

NVIDIA beats Amkor Technology on 13 of the 17 factors compared between the two stocks.

About Amkor Technology

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.