Cohu (NASDAQ: COHU) and Coherent (NASDAQ:COHR) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Insider and Institutional Ownership
86.1% of Cohu shares are held by institutional investors. Comparatively, 98.4% of Coherent shares are held by institutional investors. 6.5% of Cohu shares are held by company insiders. Comparatively, 1.4% of Coherent shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and recommmendations for Cohu and Coherent, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cohu presently has a consensus price target of $24.25, indicating a potential upside of 8.21%. Coherent has a consensus price target of $309.13, indicating a potential upside of 76.60%. Given Coherent’s stronger consensus rating and higher possible upside, analysts plainly believe Coherent is more favorable than Cohu.
Volatility and Risk
Cohu has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Coherent has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
This table compares Cohu and Coherent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Coherent does not pay a dividend. Cohu pays out 17.9% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Cohu and Coherent’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cohu||$352.70 million||1.81||$32.84 million||$1.34||16.72|
|Coherent||$1.72 billion||2.52||$207.12 million||$12.57||13.93|
Coherent has higher revenue and earnings than Cohu. Coherent is trading at a lower price-to-earnings ratio than Cohu, indicating that it is currently the more affordable of the two stocks.
Coherent beats Cohu on 13 of the 16 factors compared between the two stocks.
Cohu, Inc., through its subsidiaries, engages in the development, manufacture, sale, and servicing of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors, and thermal sub-systems for semiconductor manufacturers and test subcontractors worldwide. It offers pick-and-place handlers; thermal handler for microprocessors, graphics processors, and other integrated circuits; pick-and-place platform for fabless and outsourced semiconductor assembly and test customers, as well as for integrated device manufacturers; a platform for assembly automation; gravity-feed and test-in-strip handlers; and turret handler for testing and inspection of integrated circuits, LEDs, and discrete devices. The company also provides MEMS test modules that generate physical stimuli for testing of sensor integrated circuits; thermal sub-systems that offer temperature control of the integrated circuit during the testing process; contactor solutions; spares; and a range of device dedication kits that enable handlers to process various semiconductor packages. Cohu, Inc. 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. Cohu, Inc. was founded in 1947 and is headquartered in Poway, California.
Coherent, Inc. provides lasers and laser-based technology in a range of scientific, commercial, and industrial applications worldwide. It operates through two segments, Specialty Lasers and Systems, and Commercial Lasers and Components. The company designs, manufactures, services, and markets lasers, laser tools, precision optics, and related accessories. Its products are used in markets, such as microelectronics, materials processing, original equipment manufacturer components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent Inc. was founded in 1966 and is headquartered in Santa Clara, California.
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