Allied Motion Technologies (AMOT) vs. Xcerra (XCRA) Head to Head Comparison

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

Risk & Volatility

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Allied Motion Technologies has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, Xcerra has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Allied Motion Technologies and Xcerra, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allied Motion Technologies 0 0 0 0 N/A
Xcerra 0 1 4 0 2.80

Xcerra has a consensus target price of $11.44, indicating a potential downside of 2.82%. Given Xcerra’s higher probable upside, analysts plainly believe Xcerra is more favorable than Allied Motion Technologies.

Dividends

Allied Motion Technologies pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Xcerra does not pay a dividend. Allied Motion Technologies pays out 8.2% of its earnings in the form of a dividend.

Institutional & Insider Ownership

44.6% of Allied Motion Technologies shares are owned by institutional investors. Comparatively, 82.4% of Xcerra shares are owned by institutional investors. 22.9% of Allied Motion Technologies shares are owned by company insiders. Comparatively, 2.6% of Xcerra shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Allied Motion Technologies and Xcerra’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allied Motion Technologies $252.01 million 1.45 $8.03 million $1.22 31.79
Xcerra $390.77 million 1.65 $22.55 million $0.49 24.02

Xcerra has higher revenue and earnings than Allied Motion Technologies. Xcerra 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.

Profitability

This table compares Allied Motion Technologies and Xcerra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allied Motion Technologies 3.19% 13.61% 6.03%
Xcerra 9.85% 16.22% 12.20%

Summary

Xcerra beats Allied Motion Technologies on 10 of the 15 factors compared between the two stocks.

About Allied Motion Technologies

Allied Motion Technologies, Inc. designs, manufactures, and sells precision and specialty motion control components and systems that are used in a range of industries worldwide. It provides automotive brushless (BL) DC motors, power steering solutions, and special purpose motors; fractional horsepower permanent magnet DC and BLDC motors serving a range of original equipment applications; and high performance BLDC motors, including servo motors, frameless motors, torque motors, slot less motors, high resolution encoders, and motor/encoder assemblies. The company also offers gearing solutions in stand-alone and integrated gearing/motor configurations; and advanced electronic motion control products and custom solutions, including integrated power electronics, digital controls, and network communications for motor control and power conversion. In addition, it provides fractional horsepower BLDC outer rotor motors and traditional BLDC motor part sets; synchronous BLDC servo motor solutions and asynchronous BLDC motors; and trolleys for use in medical environments, as well as electronic controls and platform based integrated steering system solutions. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and electronics/industrial markets through direct sales force, as well as authorized manufacturers' representatives, agents, and distributors. Allied Motion Technologies Inc. was founded in 1962 and is headquartered in Amherst, New York.

About Xcerra

Xcerra Corporation provides test and handling capital equipment, interface products, and test fixtures and related services to the semiconductor and electronics manufacturing industries worldwide. It operates through two segments, Semiconductor Test Solutions and Electronic Manufacturing Solutions. The company offers Diamond series platform that offers high-density packaging for the testing of microcontrollers, and consumer and digital-based ASSP and ASIC devices; X-Series platform that offers configurations for the testing of analog-based ASSP and ASIC, power, automotive, mixed signal, and RF applications; and ASL platform for testing linear, low-end mixed signal, precision analog, and power management devices. It provides test handlers, including pick-and-place, gravity, strip, and microelectromechanical systems; bare board printed circuit board (PCB) test systems; test contactors for standard, power, and RF markets; probe pins; and loaded PCB test fixtures. In addition, the company engages in the installation and maintenance of test and handling systems, including servicing of spare parts manufactured by third parties; and provision of parts and labor warranties on test and handling systems, and instruments, as well as training on the maintenance and operation of test and handling systems. It markets and sells its products through internal direct sales organization and external distributors. The company was formerly known as LTX-Credence Corporation and changed its name to Xcerra Corporation in May 2014. Xcerra Corporation was founded in 1976 and is headquartered in Norwood, Massachusetts.

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