Head-To-Head Survey: Aehr Test Systems (NASDAQ:AEHR) and NXP Semiconductors (NASDAQ:NXPI)

NXP Semiconductors (NASDAQ:NXPI) and Aehr Test Systems (NASDAQ:AEHR) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Volatility & Risk

NXP Semiconductors has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 3.36, indicating that its stock price is 236% more volatile than the S&P 500.

Institutional & Insider Ownership

90.5% of NXP Semiconductors shares are held by institutional investors. Comparatively, 69.7% of Aehr Test Systems shares are held by institutional investors. 0.1% of NXP Semiconductors 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 will outperform the market over the long term.

Valuation & Earnings

This table compares NXP Semiconductors and Aehr Test Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$13.80 billion	4.87	$2.02 billion	$12.72	20.96
Aehr Test Systems	$50.00 million	40.69	-$7.13 million	($0.24)	-258.54

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NXP Semiconductors	23.40%	28.57%	11.87%
Aehr Test Systems	2.97%	1.76%	1.54%

Analyst Ratings

This is a summary of recent recommendations for NXP Semiconductors and Aehr Test Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	1	9	16	0	2.58
Aehr Test Systems	1	1	5	1	2.75

NXP Semiconductors presently has a consensus price target of $295.78, suggesting a potential upside of 10.97%. Aehr Test Systems has a consensus price target of $118.75, suggesting a potential upside of 91.38%. Given Aehr Test Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Aehr Test Systems is more favorable than NXP Semiconductors.

Summary

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

About NXP Semiconductors

NXP Semiconductors is a global semiconductor company headquartered in Eindhoven, the Netherlands. It develops and supplies chips and related technologies for automotive, industrial and Internet of Things, mobile, and communications infrastructure applications. Its products include microcontrollers and processors, analog and mixed-signal components, connectivity solutions, and security technologies. In the automotive sector, NXP supplies technologies used in vehicle networking, radar, and safety systems; its other offerings support applications such as secure identification and near-field communication.

About Aehr Test Systems

Aehr Test Systems designs, manufactures and markets semiconductor test and burn-in equipment and related products. Its systems are used to test devices at the wafer, die and packaged-chip stages of production. The company’s offerings include FOX series test and burn-in systems, WaferPak wafer-level contactors and DiePak carriers. These products support testing for applications such as silicon carbide power semiconductors, silicon photonics and other devices used in automotive, computing and communications markets.