Aehr Test Systems (NASDAQ:AEHR – Get Free Report) and Qnity Electronics (NYSE:Q – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.
Analyst Recommendations
This is a summary of recent ratings for Aehr Test Systems and Qnity Electronics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aehr Test Systems | 1 | 0 | 3 | 2 | 3.00 |
| Qnity Electronics | 0 | 1 | 8 | 1 | 3.00 |
Aehr Test Systems currently has a consensus target price of $117.50, suggesting a potential upside of 4.87%. Qnity Electronics has a consensus target price of $151.78, suggesting a potential upside of 10.51%. Given Qnity Electronics’ higher probable upside, analysts clearly believe Qnity Electronics is more favorable than Aehr Test Systems.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aehr Test Systems | $50.00 million | 73.10 | -$7.13 million | ($0.24) | -466.84 |
| Qnity Electronics | $4.75 billion | 6.04 | $692.00 million | $2.80 | 49.05 |
Qnity Electronics has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Qnity Electronics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
69.7% of Aehr Test Systems shares are owned by institutional investors. 6.8% of Aehr Test Systems shares are owned by insiders. Comparatively, 0.2% of Qnity Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Aehr Test Systems and Qnity Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aehr Test Systems | -14.25% | -3.83% | -3.36% |
| Qnity Electronics | 11.25% | 10.83% | 6.26% |
Summary
Qnity Electronics beats Aehr Test Systems on 9 of the 13 factors compared between the two stocks.
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.
About Qnity Electronics
Qnity Electronics Inc. is a premier technology solution provider across the semiconductor value chain. Qnity Electronics Inc. is based in WILMINGTON, Del.
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