Aehr Test Systems (NASDAQ:AEHR – Get Free Report) and Qorvo (NASDAQ:QRVO – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Insider & Institutional Ownership
69.7% of Aehr Test Systems shares are owned by institutional investors. Comparatively, 88.6% of Qorvo shares are owned by institutional investors. 4.6% of Aehr Test Systems shares are owned by company insiders. Comparatively, 0.5% of Qorvo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Aehr Test Systems and Qorvo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aehr Test Systems | -14.25% | -3.83% | -3.36% |
| Qorvo | 10.95% | 17.23% | 10.06% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aehr Test Systems | 1 | 1 | 5 | 1 | 2.75 |
| Qorvo | 1 | 14 | 3 | 0 | 2.11 |
Aehr Test Systems presently has a consensus price target of $132.50, indicating a potential upside of 30.41%. Qorvo has a consensus price target of $94.00, indicating a potential downside of 16.23%. Given Aehr Test Systems’ stronger consensus rating and higher probable upside, research analysts clearly believe Aehr Test Systems is more favorable than Qorvo.
Risk and Volatility
Aehr Test Systems has a beta of 3.47, meaning that its stock price is 247% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.
Earnings & Valuation
This table compares Aehr Test Systems and Qorvo”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aehr Test Systems | $50.00 million | 66.37 | -$7.13 million | ($0.24) | -423.33 |
| Qorvo | $3.68 billion | 2.69 | $338.99 million | $4.31 | 26.03 |
Qorvo has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Qorvo, indicating that it is currently the more affordable of the two stocks.
Summary
Qorvo beats Aehr Test Systems on 8 of the 15 factors compared between the two stocks.
About Aehr Test Systems
Aehr Test Systems provides test solutions for testing, burning-in, and semiconductor devices in wafer level, singulated die, and package part form, and installed systems worldwide. Its product portfolio includes FOX-XP and FOX-NP systems that are full wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize range of devices, including silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The company also offers FOX-CP system, a low-cost single-wafer compact test solution for logic, memory, and photonic devices; FOX WaferPak Contactor, a full wafer contactor capable of testing wafers up to 300mm that enables integrated circuit manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. In addition, it provides FOX DiePak Carrier, a reusable temporary package that enables IC manufacturers to perform final test and burn-in of bare die and modules; and FOX DiePak Loader. The company was incorporated in 1977 and is headquartered in Fremont, California.
About Qorvo
Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.
Receive News & Ratings for Aehr Test Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aehr Test Systems and related companies with MarketBeat.com's FREE daily email newsletter.
