Entegris (NASDAQ: ENTG) and Cohu (NASDAQ:COHU) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Entegris pays an annual dividend of $0.14 per share and has a dividend yield of 0.4%. Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Entegris pays out 23.7% of its earnings in the form of a dividend. Cohu pays out 21.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cohu is clearly the better dividend stock, given its higher yield and lower payout ratio.
96.5% of Entegris shares are owned by institutional investors. Comparatively, 86.1% of Cohu shares are owned by institutional investors. 1.5% of Entegris shares are owned by insiders. Comparatively, 6.5% of Cohu shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Entegris and Cohu, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Entegris currently has a consensus target price of $36.80, suggesting a potential downside of 3.36%. Cohu has a consensus target price of $24.25, suggesting a potential downside of 1.30%. Given Cohu’s higher possible upside, analysts plainly believe Cohu is more favorable than Entegris.
This table compares Entegris and Cohu’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Entegris has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Cohu has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Earnings & Valuation
This table compares Entegris and Cohu’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Entegris||$1.34 billion||4.00||$85.06 million||$0.59||64.54|
|Cohu||$352.70 million||1.99||$32.84 million||$1.13||21.74|
Entegris has higher revenue and earnings than Cohu. Cohu is trading at a lower price-to-earnings ratio than Entegris, indicating that it is currently the more affordable of the two stocks.
Entegris beats Cohu on 11 of the 17 factors compared between the two stocks.
Entegris, Inc. is a global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. The Company operates in three business segments: Specialty Chemicals and Engineered Materials (SCEM), Advanced Materials Handling (AMH) and Microcontamination Control (MC). The SCEM segment provides process chemistries, gases, materials and delivery systems to support semiconductor and other manufacturing processes. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a set of applications in the semiconductor industry and other high-technology industries. AMH offers wafer solutions, chemical containers and fluidics. MC offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.
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.
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