Aehr Test Systems (AEHR) vs. LTX-Credence Co. common stock (XCRA) Head to Head Review

Aehr Test Systems (NASDAQ: AEHR) and LTX-Credence Co. common stock (NASDAQ:XCRA) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

This table compares Aehr Test Systems and LTX-Credence Co. common stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aehr Test Systems -1.58% -1.41% -0.80%
LTX-Credence Co. common stock 10.49% 16.92% 12.82%

Volatility and Risk

Aehr Test Systems has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, LTX-Credence Co. common stock has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Valuation and Earnings

This table compares Aehr Test Systems and LTX-Credence Co. common stock’s gross 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 3.25 -$5.65 million ($0.29) -9.66
LTX-Credence Co. common stock $390.77 million 1.97 $22.55 million $0.49 28.67

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Aehr Test Systems and LTX-Credence Co. common stock, 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
LTX-Credence Co. common stock 0 4 1 0 2.20

LTX-Credence Co. common stock has a consensus price target of $13.56, suggesting a potential downside of 3.47%. Given LTX-Credence Co. common stock’s higher possible upside, analysts plainly believe LTX-Credence Co. common stock is more favorable than Aehr Test Systems.

Institutional and Insider Ownership

22.7% of Aehr Test Systems shares are held by institutional investors. Comparatively, 83.5% of LTX-Credence Co. common stock shares are held by institutional investors. 21.9% of Aehr Test Systems shares are held by insiders. Comparatively, 2.6% of LTX-Credence Co. common stock shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

LTX-Credence Co. common stock beats Aehr Test Systems on 10 of the 12 factors compared between the two stocks.

Aehr Test Systems Company Profile

Aehr Test Systems designs, engineers, manufactures, and sells test and burn-in equipment used in the semiconductor industry worldwide. The company offers full wafer contact test systems, test during burn-in systems, test fixtures, die carriers, and related accessories; and Advanced Burn-in and Test System family of packaged part burn-in and test systems, which perform test during burn-in of complex devices, such as digital signal processors, microprocessors, microcontrollers, and systems-on-a-chip, as well as offer individual temperature control for high-power advanced logic devices. The company also provides FOX systems, which are full wafer contact parallel test and burn-in systems designed to make contact with all pads of a wafer simultaneously; WaferPak cartridge that includes a full-wafer probe card for use in testing wafers in FOX systems; DiePak carrier, a reusable and temporary package that enables IC manufacturers to perform final test and burn-in of singulated bare die; and test fixtures that hold the devices undergoing test or burn-in and electrically connect the devices under test to the system electronics. In addition, the company offers customer service and support programs, including system installation, system repair, applications engineering support, spare parts inventory, customer training, and documentation services. It markets and sells its products to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers, and burn-in and test service companies through a network of distributors and sales representatives. Aehr Test Systems was founded in 1977 and is headquartered in Fremont, California.

LTX-Credence Co. common stock Company Profile

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.

Receive News & Ratings for Aehr Test Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aehr Test Systems and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply