Analogic (NASDAQ: ALOG) and Aehr Test Systems (NASDAQ:AEHR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
This is a breakdown of recent recommendations and price targets for Analogic and Aehr Test Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Aehr Test Systems||0||0||0||0||N/A|
This table compares Analogic and Aehr Test Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Aehr Test Systems||-1.58%||-1.44%||-0.80%|
Institutional and Insider Ownership
97.6% of Analogic shares are owned by institutional investors. Comparatively, 25.0% of Aehr Test Systems shares are owned by institutional investors. 1.2% of Analogic shares are owned by company insiders. Comparatively, 21.9% of Aehr Test Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Analogic and Aehr Test Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Analogic||$486.37 million||2.45||-$74.23 million||$1.72||55.44|
|Aehr Test Systems||$18.90 million||2.64||-$5.65 million||($0.29)||-7.90|
Aehr Test Systems has lower revenue, but higher earnings than Analogic. Aehr Test Systems is trading at a lower price-to-earnings ratio than Analogic, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Analogic has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Analogic pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Aehr Test Systems does not pay a dividend. Analogic pays out 23.3% of its earnings in the form of a dividend.
Analogic beats Aehr Test Systems on 8 of the 14 factors compared between the two stocks.
Analogic Company Profile
Analogic Corporation designs, manufactures, and sells medical imaging systems, ultrasound and security systems, and subsystems to original equipment manufacturers (OEMs) and end users primarily for the medical and airport security markets worldwide. It operates in three segments: Medical Imaging, Ultrasound, and Security and Detection. The Medical Imaging segment offers computed tomography (CT) detector systems, data acquisition systems, data management systems, and integrated CT systems; magnetic resonance imaging products, including gradient and radio frequency amplifiers; and digital mammography products, such as detector plates, as well as motion control devices for use in computer-controlled automation systems primarily for the semiconductor, food and beverage, and laboratory automation markets. This segment sells its products through multinational OEMs. The Ultrasound segment designs and manufactures medical ultrasound systems under the BK Ultrasound brand for use in urology, surgery, point-of-care, anesthesia, and general imaging applications. It also provides its products for cardiology, radiology, OB/GYN, surgery, and interventional radiology applications, as well as offers various transducers. This segment sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. The Security and Detection segment designs and manufactures automated threat detection systems for aviation baggage inspection applications. It provides checked baggage, checkpoint CT, and high speed in-line baggage handling systems; and rapid DNA analysis systems to analyze multiple human DNA samples. This segment sells its products primarily through multinational partners. The company was founded in 1967 and is headquartered in Peabody, Massachusetts.
Aehr Test Systems Company Profile
Aehr Test Systems is engaged in the designing, manufacturing and marketing of advanced test and burn-in products to the semiconductor manufacturing industry. The Company manufactures and markets full wafer contact test systems, test during burn-in systems, test fixtures, die carriers and related accessories. The Company’s principal products are the Advanced Burn-In and Test System (ABTS), the FOX full wafer contact parallel test and burn-in systems, WaferPak full wafer contactor, the DiePak carrier and test fixtures. The Company develops, manufactures and sells systems, which are designed to reduce the cost of testing and to perform reliability screening, or burn-in, of complex logic devices, memory integrated circuits (ICs), sensors and optical devices. These systems can be used to perform parallel testing and burn-in of packaged ICs, singulated bare die or ICs still in wafer form.
Receive News & Ratings for Analogic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Analogic and related companies with MarketBeat.com's FREE daily email newsletter.