Critical Comparison: AUO (OTCMKTS:AUOTY) versus ASE Technology (NYSE:ASX)

ASE Technology (NYSE:ASX) and AUO (OTCMKTS:AUOTY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Dividends

ASE Technology pays an annual dividend of $0.23 per share and has a dividend yield of 2.2%. AUO pays an annual dividend of $0.30 per share and has a dividend yield of 6.9%. ASE Technology pays out 51.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

6.8% of ASE Technology shares are held by institutional investors. 22.9% of ASE Technology shares are held by company insiders. Comparatively, 16.0% of AUO shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for ASE Technology and AUO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASE Technology	0	0	2	0	3.00
AUO	0	0	0	0	0.00

Profitability

This table compares ASE Technology and AUO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASE Technology	5.47%	10.05%	4.69%
AUO	N/A	N/A	N/A

Risk & Volatility

ASE Technology has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, AUO has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares ASE Technology and AUO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASE Technology	$593.73 billion	0.04	$1.16 billion	$0.45	23.64
AUO	N/A	N/A	N/A	N/A	N/A

ASE Technology has higher revenue and earnings than AUO.

Summary

ASE Technology beats AUO on 9 of the 11 factors compared between the two stocks.

About ASE Technology

ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.