Aehr Test Systems (NASDAQ: AEHR) and Exfo (NASDAQ:EXFO) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
This is a summary of current ratings and target prices for Aehr Test Systems and Exfo, as reported by MarketBeat.
||Strong Buy Ratings
|Aehr Test Systems
Exfo has a consensus target price of $5.35, indicating a potential upside of 27.99%. Given Exfo’s higher probable upside, analysts clearly believe Exfo is more favorable than Aehr Test Systems.
This table compares Aehr Test Systems and Exfo’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Aehr Test Systems
Risk and Volatility
Aehr Test Systems has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Exfo has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Insider & Institutional Ownership
25.0% of Aehr Test Systems shares are owned by institutional investors. Comparatively, 14.8% of Exfo shares are owned by institutional investors. 21.9% of Aehr Test Systems shares are owned by insiders. Comparatively, 20.0% of Exfo shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Aehr Test Systems and Exfo’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|Aehr Test Systems
Exfo has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Exfo, indicating that it is currently the more affordable of the two stocks.
Exfo beats Aehr Test Systems on 8 of the 12 factors compared between the two stocks.
About Aehr Test Systems
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.
EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.
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