Allied Motion Technologies (AMOT) vs. Aehr Test Systems (AEHR) Critical Analysis

Allied Motion Technologies (NASDAQ: AMOT) and Aehr Test Systems (NASDAQ:AEHR) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

This table compares Allied Motion Technologies and Aehr Test Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allied Motion Technologies 3.57% 10.92% 4.67%
Aehr Test Systems -13.92% -23.69% -12.00%

Valuation and Earnings

This table compares Allied Motion Technologies and Aehr Test Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allied Motion Technologies $245.89 million 1.24 $9.07 million $0.94 34.21
Aehr Test Systems $18.90 million 2.65 -$5.65 million ($0.20) -11.50

Allied Motion Technologies has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Allied Motion Technologies, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Allied Motion Technologies has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Dividends

Allied Motion Technologies pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Aehr Test Systems does not pay a dividend. Allied Motion Technologies pays out 10.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Allied Motion Technologies and Aehr Test Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allied Motion Technologies 0 0 0 0 N/A
Aehr Test Systems 0 0 0 0 N/A

Institutional and Insider Ownership

44.0% of Allied Motion Technologies shares are held by institutional investors. Comparatively, 29.7% of Aehr Test Systems shares are held by institutional investors. 30.8% of Allied Motion Technologies shares are held by company insiders. Comparatively, 21.9% of Aehr Test Systems shares are held by company 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.

Summary

Allied Motion Technologies beats Aehr Test Systems on 11 of the 13 factors compared between the two stocks.

Allied Motion Technologies Company Profile

Allied Motion Technologies Inc. designs, manufactures and sells precision and specialty motion control components and systems used in a range of industries. The Company serves various markets, including vehicle, medical, aerospace and defense, electronics and industrial. It focuses on motion control applications. It is engaged in developing electro-magnetic, mechanical and electronic motion technology. It operates in the design and manufacture of motion control products, marketed to original equipment manufacturers and end users segment. Its products are used in the handling, inspection, and testing of components and final products, such as printers, tunable lasers and spectrum analyzers for the fiber optic industry, and test and processing equipment for the semiconductor manufacturing industry. Its products are used in a range of medical, industrial and commercial aviation applications, such as dialysis equipment, industrial ink jet printers and cash dispensers.

Aehr Test Systems Company Profile

Aehr Test Systems is engaged in the designing, manufacturing and marketing of advanced test and burn-in products to the semiconductor manufacturing industry. The Company manufactures and markets full wafer contact test systems, test during burn-in systems, test fixtures, die carriers and related accessories. The Company’s principal products are the Advanced Burn-In and Test System (ABTS), the FOX full wafer contact parallel test and burn-in systems, WaferPak full wafer contactor, the DiePak carrier and test fixtures. The Company develops, manufactures and sells systems, which are designed to reduce the cost of testing and to perform reliability screening, or burn-in, of complex logic devices, memory integrated circuits (ICs), sensors and optical devices. These systems can be used to perform parallel testing and burn-in of packaged ICs, singulated bare die or ICs still in wafer form.

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