Analyzing Aeluma (NASDAQ:ALMU) and Photronics (NASDAQ:PLAB)

Photronics (NASDAQ:PLAB) and Aeluma (NASDAQ:ALMU) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares Photronics and Aeluma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Photronics	19.05%	7.45%	6.53%
Aeluma	-205.31%	-18.14%	-17.20%

Institutional and Insider Ownership

88.4% of Photronics shares are held by institutional investors. 3.3% of Photronics shares are held by insiders. Comparatively, 14.7% of Aeluma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Photronics has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Aeluma has a beta of 4.1, meaning that its share price is 310% more volatile than the S&P 500.

Valuation and Earnings

This table compares Photronics and Aeluma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Photronics	$866.82 million	2.10	$136.40 million	$2.84	10.85
Aeluma	$4.46 million	56.81	-$9.16 million	($0.52)	-25.23

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Photronics and Aeluma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Photronics	0	2	3	1	2.83
Aeluma	1	0	3	1	2.80

Photronics currently has a consensus price target of $49.33, suggesting a potential upside of 60.07%. Aeluma has a consensus price target of $25.00, suggesting a potential upside of 90.55%. Given Aeluma’s higher probable upside, analysts clearly believe Aeluma is more favorable than Photronics.

Summary

Photronics beats Aeluma on 9 of the 13 factors compared between the two stocks.

About Photronics

Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company offers electrical and optical components. It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut.

About Aeluma

Aeluma, Inc. develops optoelectronic and electronic devices in the United States. The company manufactures semiconductor materials and chips using compound semiconductors on diameter substrates that are used to manufacture mass market microelectronics. It offers its devices for use in mobile, automotive, AI, defence and aerospace, communication, AR/VR, and HPC applications, as well as laser emitters, transistors for integrated circuits, quantum photonic circuits, and solar cells applications. Aeluma, Inc. was formerly known as Parc Investments, Inc. and changed its name to Aeluma, Inc. June 2021. The company was founded in 2019 and is headquartered in Goleta, California.