Head to Head Contrast: PDF Solutions (NASDAQ:PDFS) & Energous (NASDAQ:WATT)

PDF Solutions (NASDAQ:PDFS) and Energous (NASDAQ:WATT) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares PDF Solutions and Energous”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDF Solutions	$219.02 million	7.47	-$640,000.00	$0.25	164.00
Energous	$10.48 million	4.83	-$9.59 million	($2.21)	-4.14

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

Volatility and Risk

PDF Solutions has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Energous has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Profitability

This table compares PDF Solutions and Energous’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PDF Solutions	4.27%	7.21%	4.83%
Energous	-76.37%	-28.67%	-24.91%

Analyst Ratings

This is a summary of current ratings and price targets for PDF Solutions and Energous, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDF Solutions	0	3	6	0	2.67
Energous	1	1	1	0	2.00

PDF Solutions currently has a consensus target price of $61.33, suggesting a potential upside of 49.59%. Energous has a consensus target price of $15.00, suggesting a potential upside of 63.76%. Given Energous’ higher possible upside, analysts clearly believe Energous is more favorable than PDF Solutions.

Insider & Institutional Ownership

79.5% of PDF Solutions shares are held by institutional investors. Comparatively, 4.3% of Energous shares are held by institutional investors. 11.1% of PDF Solutions shares are held by insiders. Comparatively, 0.2% of Energous shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

PDF Solutions beats Energous on 13 of the 14 factors compared between the two stocks.

About PDF Solutions

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides Design-For-Inspection (DFI) systems, such as DFI On-Chip Instruments; eProbe Non-Contact E-Beam Tool; and Characterization Vehicle (CV) system, which includes CV Test Chips and pdFasTest Electrical Testers, as well as Exensio characterization software, designed to analyze the measurements collected using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. PDF Solutions, Inc. was founded in 1991 and is headquartered in Santa Clara, California.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.