Head to Head Survey: Aehr Test Systems (NASDAQ:AEHR) and Astera Labs (NASDAQ:ALAB)

Astera Labs (NASDAQ:ALAB) and Aehr Test Systems (NASDAQ:AEHR) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares Astera Labs and Aehr Test Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$852.53 million	65.45	$219.13 million	$2.02	159.21
Aehr Test Systems	$50.00 million	87.46	-$7.13 million	($0.24)	-558.58

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astera Labs	30.74%	19.24%	17.27%
Aehr Test Systems	-14.25%	-3.83%	-3.36%

Institutional & Insider Ownership

60.5% of Astera Labs shares are held by institutional investors. Comparatively, 69.7% of Aehr Test Systems shares are held by institutional investors. 10.4% of Astera Labs shares are held by company insiders. Comparatively, 6.8% of Aehr Test Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Astera Labs has a beta of 3.84, suggesting that its stock price is 284% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 3.1, suggesting that its stock price is 210% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Astera Labs and Aehr Test Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	9	13	1	2.65
Aehr Test Systems	1	0	4	2	3.00

Astera Labs currently has a consensus price target of $325.25, indicating a potential upside of 1.13%. Aehr Test Systems has a consensus price target of $136.67, indicating a potential upside of 1.94%. Given Aehr Test Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Aehr Test Systems is more favorable than Astera Labs.

Summary

Astera Labs beats Aehr Test Systems on 10 of the 15 factors compared between the two stocks.

About Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.

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.