Financial Review: Ichor (NASDAQ:ICHR) versus Cohu (NASDAQ:COHU)

Ichor (NASDAQ:ICHR) and Cohu (NASDAQ:COHU) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Ichor and Cohu”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ichor	$947.65 million	1.67	-$52.78 million	($1.17)	-36.09
Cohu	$452.96 million	5.51	-$74.27 million	($0.83)	-63.54

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

Risk & Volatility

Ichor has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Cohu has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Insider & Institutional Ownership

94.8% of Ichor shares are owned by institutional investors. Comparatively, 94.7% of Cohu shares are owned by institutional investors. 1.7% of Ichor shares are owned by company insiders. Comparatively, 3.0% of Cohu shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Ichor and Cohu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ichor	-3.97%	0.47%	0.33%
Cohu	-7.43%	-1.96%	-1.30%

Analyst Recommendations

This is a breakdown of recent recommendations for Ichor and Cohu, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ichor	1	2	6	1	2.70
Cohu	1	1	7	1	2.80

Ichor currently has a consensus target price of $85.89, indicating a potential upside of 103.38%. Cohu has a consensus target price of $68.75, indicating a potential upside of 30.36%. Given Ichor’s higher probable upside, equities research analysts clearly believe Ichor is more favorable than Cohu.

Summary

Ichor beats Cohu on 9 of the 14 factors compared between the two stocks.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.

About Cohu

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, California.