Head to Head Survey: Aehr Test Systems (AEHR) and Itron (ITRI)

Aehr Test Systems (NASDAQ: AEHR) and Itron (NASDAQ:ITRI) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

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This is a breakdown of recent ratings and target prices for Aehr Test Systems and Itron, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aehr Test Systems 0 0 0 0 N/A
Itron 0 3 6 1 2.80

Itron has a consensus price target of $84.44, suggesting a potential upside of 23.91%. Given Itron’s higher probable upside, analysts plainly believe Itron is more favorable than Aehr Test Systems.

Institutional & Insider Ownership

25.0% of Aehr Test Systems shares are held by institutional investors. Comparatively, 95.3% of Itron shares are held by institutional investors. 21.9% of Aehr Test Systems shares are held by company insiders. Comparatively, 2.0% of Itron shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Aehr Test Systems and Itron’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aehr Test Systems -1.58% -1.44% -0.80%
Itron 2.84% 15.84% 6.53%

Valuation & Earnings

This table compares Aehr Test Systems and Itron’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aehr Test Systems $18.90 million 2.64 -$5.65 million ($0.29) -7.90
Itron $2.02 billion 1.32 $57.29 million $3.06 22.27

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

Volatility & Risk

Aehr Test Systems has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Itron has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Summary

Itron beats Aehr Test Systems on 11 of the 13 factors compared between the two stocks.

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.

Itron Company Profile

Itron, Inc., a technology company, provides end-to-end solutions that measures, manages, and analyzes energy and water use worldwide. The company operates through three segments: Electricity, Gas, and Water. It offers standard electromechanical and electronic, gas, and water and heat meters; and smart electricity, gas, and water meters and communication modules. The company also provides prepayment systems, including smart key, keypad, and smart card communication technologies; smart systems, such as handheld, mobile, and fixed network collection technologies; smart network technologies; meter data management software; and knowledge application solutions. In addition, it offers installation and software implementation; professional services comprising consulting and analysis; and project management, installation, and post-sale maintenance support services. The company offers its standard metering systems to measure electricity, natural gas, water, or thermal energy; smart metering systems to collect, store, and transmit meter data to handheld computers, mobile units, telephone, radio frequency, cellular, power line carrier, and fixed networks. Itron, Inc. markets its products directly through its sales force, as well as through indirect sales force consisting of distributors, sales representatives, partners, and meter manufacturer representatives to utilities and municipalities. The company was founded in 1977 and is headquartered in Liberty Lake, Washington.

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