Analyzing Veeco Instruments (VECO) and The Competition

Veeco Instruments (NASDAQ: VECO) is one of 105 public companies in the “Semiconductors” industry, but how does it contrast to its peers? We will compare Veeco Instruments to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.

Volatility & Risk

Veeco Instruments has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Veeco Instruments’ peers have a beta of 1.07, indicating that their average share price is 7% more volatile than the S&P 500.

Earnings & Valuation

This table compares Veeco Instruments and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Veeco Instruments $388.54 million $4.60 million -9.63
Veeco Instruments Competitors $4.62 billion $1.36 billion 80.34

Veeco Instruments’ peers have higher revenue and earnings than Veeco Instruments. Veeco Instruments is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Veeco Instruments and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veeco Instruments -23.65% -1.33% -0.91%
Veeco Instruments Competitors -45.84% 1.42% 0.78%

Analyst Ratings

This is a summary of recent ratings and price targets for Veeco Instruments and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeco Instruments 0 2 7 0 2.78
Veeco Instruments Competitors 912 4746 8678 364 2.58

Veeco Instruments presently has a consensus target price of $30.38, indicating a potential upside of 36.52%. As a group, “Semiconductors” companies have a potential upside of 8.70%. Given Veeco Instruments’ stronger consensus rating and higher possible upside, equities analysts plainly believe Veeco Instruments is more favorable than its peers.

Institutional and Insider Ownership

96.0% of Veeco Instruments shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Semiconductors” companies are owned by institutional investors. 2.9% of Veeco Instruments shares are owned by company insiders. Comparatively, 6.5% of shares of all “Semiconductors” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Veeco Instruments peers beat Veeco Instruments on 7 of the 12 factors compared.

Veeco Instruments Company Profile

Veeco Instruments Inc. is engaged in the design, development, manufacture and support of thin film process equipment, primarily sold to make electronic devices. The Company’s geographical segments include the United States; China; Europe, Middle East and Africa (EMEA), and Rest of World (ROW). The Company’s portfolio of technology solutions focus on market areas, including Lighting, Display & Power Electronics; Advanced Packaging, micro-electromechanical systems (MEMS) & radio frequency (RF); Scientific & Industrial, and Data Storage. The Company’s equipment is used to make electronic devices, including light emitting diodes (LEDs), MEMS, wireless devices, power electronics, hard disk drives (HDDs) and semiconductor devices. The Company’s System products include Metal Organic Chemical Vapor Deposition Systems, Precision Surface Processing Systems, Ion Beam Etch and Deposition Systems, Molecular Beam Epitaxy Systems, and Other Deposition and Industrial Products.

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