ACM Research (ACMR) versus SUMITOMO HEAVY/ADR (SOHVY) Critical Review

ACM Research (NASDAQ:ACMR) and SUMITOMO HEAVY/ADR (OTCMKTS:SOHVY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Dividends

SUMITOMO HEAVY/ADR pays an annual dividend of $0.07 per share and has a dividend yield of 0.9%. ACM Research does not pay a dividend. SUMITOMO HEAVY/ADR pays out 10.6% of its earnings in the form of a dividend.

Profitability

This table compares ACM Research and SUMITOMO HEAVY/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ACM Research 5.43% 14.90% 7.14%
SUMITOMO HEAVY/ADR N/A N/A N/A

Earnings & Valuation

This table compares ACM Research and SUMITOMO HEAVY/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ACM Research $36.51 million 4.10 -$310,000.00 $0.19 56.37
SUMITOMO HEAVY/ADR $7.14 billion 0.55 $324.47 million $0.66 12.17

SUMITOMO HEAVY/ADR has higher revenue and earnings than ACM Research. SUMITOMO HEAVY/ADR is trading at a lower price-to-earnings ratio than ACM Research, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ACM Research and SUMITOMO HEAVY/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ACM Research 0 0 3 0 3.00
SUMITOMO HEAVY/ADR 0 0 0 0 N/A

ACM Research presently has a consensus price target of $18.50, suggesting a potential upside of 72.74%. Given ACM Research’s higher probable upside, equities analysts clearly believe ACM Research is more favorable than SUMITOMO HEAVY/ADR.

Insider & Institutional Ownership

12.6% of ACM Research shares are owned by institutional investors. 51.9% of ACM Research shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

ACM Research beats SUMITOMO HEAVY/ADR on 10 of the 14 factors compared between the two stocks.

About ACM Research

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase of megasonic waves to deliver megasonic energy to flat and patterned wafer surfaces in a uniform manner on a microscopic level; timely energized bubble oscillation cleaning equipment for conventional two-dimensional and three-dimensional patterned wafers at advanced process nodes; and custom-made wafer assembly and packaging equipment. The company markets and sells its products under the Ultra C brand name through direct sales force and third-party representatives. ACM Research, Inc. was founded in 1998 and is headquartered in Fremont, California.

About SUMITOMO HEAVY/ADR

Sumitomo Heavy Industries, Ltd. develops, manufactures, and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Asia, Europe, and the United States. Its Machinery Components segment offers power transmission and control equipment, including drives, compact gear motors, motion control drives, and gearboxes. The company's Precision Machinery segment provides injection molding machines, transfer molding presses, cryocoolers, cryopumps, precision positioning equipment, laser annealing machines, laser drills, control systems, motion components, ion implanters, rolls for metal rolling, surface grinding machines, coolant systems, and extrusion coating lines for smartphone and semiconductor manufacturing industries. Its Construction Machinery segment offers hydraulic excavators and road machinery. The company's Industrial Machinery offers cyclotrons for positron emission tomography, positron emission tomography tracer production systems, proton therapy systems, vacuum coating equipment, forging presses, lifting magnets, steam turbines, process pumps, material handling systems, logistics systems, parking systems, non-destructive inspections, and forklifts. Its Ships segment provides oil tankers. The company's Environmental Facilities & Plants segment offers circulating fluidized bed boilers, rotary kiln-type recycling facilities, electrostatic precipitators, evaporation and crystallization facilities, spinning machines, clean room systems, dust collectors, distillation and extraction plants, reactor vessels, mixing vessels, industrial waste water treatment facilities, water and sewage treatment systems, and food and beverage manufacturing facilities. Its Others segment provides IT solutions and security services. The company was founded in 1888 and is headquartered in Tokyo, Japan.

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