Aehr Test Systems (NASDAQ:AEHR) vs. Qorvo (NASDAQ:QRVO) Head-To-Head Contrast

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

Risk & Volatility

Qorvo has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 3.06, suggesting that its share price is 206% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qorvo	$3.68 billion	2.83	$338.99 million	$4.31	27.37
Aehr Test Systems	$50.00 million	68.19	-$7.13 million	($0.24)	-434.96

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Qorvo	10.95%	17.23%	10.06%
Aehr Test Systems	-14.25%	-3.83%	-3.36%

Analyst Recommendations

This is a summary of current recommendations and price targets for Qorvo and Aehr Test Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qorvo	1	14	3	0	2.11
Aehr Test Systems	1	1	5	1	2.75

Qorvo presently has a consensus price target of $94.00, indicating a potential downside of 20.32%. Aehr Test Systems has a consensus price target of $132.50, indicating a potential upside of 26.93%. Given Aehr Test Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Aehr Test Systems is more favorable than Qorvo.

Institutional & Insider Ownership

88.6% of Qorvo shares are held by institutional investors. Comparatively, 69.7% of Aehr Test Systems shares are held by institutional investors. 0.5% of Qorvo shares are held by insiders. Comparatively, 4.6% of Aehr Test Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Qorvo beats Aehr Test Systems on 8 of the 15 factors compared between the two stocks.

About Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.

About Aehr Test Systems

Aehr Test Systems provides test solutions for testing, burning-in, and semiconductor devices in wafer level, singulated die, and package part form, and installed systems worldwide. Its product portfolio includes FOX-XP and FOX-NP systems that are full wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize range of devices, including silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The company also offers FOX-CP system, a low-cost single-wafer compact test solution for logic, memory, and photonic devices; FOX WaferPak Contactor, a full wafer contactor capable of testing wafers up to 300mm that enables integrated circuit manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. In addition, it provides FOX DiePak Carrier, a reusable temporary package that enables IC manufacturers to perform final test and burn-in of bare die and modules; and FOX DiePak Loader. The company was incorporated in 1977 and is headquartered in Fremont, California.