Head-To-Head Survey: Exfo (EXFO) vs. Aehr Test Systems (AEHR)

Exfo (NASDAQ: EXFO) and Aehr Test Systems (NASDAQ:AEHR) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility and Risk

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Exfo has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

14.8% of Exfo shares are owned by institutional investors. Comparatively, 25.0% of Aehr Test Systems shares are owned by institutional investors. 20.0% of Exfo 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 will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Exfo 0.09% 5.22% 3.94%
Aehr Test Systems -13.92% -23.69% -12.00%

Analyst Recommendations

This is a summary of current ratings and price targets for Exfo and Aehr Test Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exfo 0 4 1 0 2.20
Aehr Test Systems 0 0 0 0 N/A

Exfo presently has a consensus target price of $5.35, indicating a potential upside of 27.38%. Given Exfo’s higher probable upside, equities research analysts plainly believe Exfo is more favorable than Aehr Test Systems.

Earnings & Valuation

This table compares Exfo and Aehr Test Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exfo $243.30 million 0.95 $850,000.00 $0.21 20.00
Aehr Test Systems $18.90 million 2.60 -$5.65 million ($0.29) -7.76

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

Summary

Exfo beats Aehr Test Systems on 8 of the 12 factors compared between the two stocks.

About Exfo

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

About Aehr Test Systems

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.

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