Critical Comparison: Tessera Holding Corporation (XPER) vs. STR Holdings (STRI)
Tessera Holding Corporation (NASDAQ: XPER) and STR Holdings (OTCMKTS:STRI) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
99.6% of Tessera Holding Corporation shares are held by institutional investors. Comparatively, 0.0% of STR Holdings shares are held by institutional investors. 2.4% of Tessera Holding Corporation shares are held by insiders. Comparatively, 10.3% of STR Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Tessera Holding Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. STR Holdings does not pay a dividend. Tessera Holding Corporation pays out -55.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Tessera Holding Corporation and STR Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Tessera Holding Corporation||$259.57 million||3.82||$56.08 million||($1.44)||-13.96|
|STR Holdings||$20.11 million||0.27||-$15.87 million||($0.61)||-0.46|
Tessera Holding Corporation has higher revenue and earnings than STR Holdings. Tessera Holding Corporation is trading at a lower price-to-earnings ratio than STR Holdings, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Tessera Holding Corporation has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, STR Holdings has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Tessera Holding Corporation and STR Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tessera Holding Corporation||0||1||1||0||2.50|
Tessera Holding Corporation presently has a consensus price target of $53.00, suggesting a potential upside of 163.68%. Given Tessera Holding Corporation’s higher probable upside, equities analysts clearly believe Tessera Holding Corporation is more favorable than STR Holdings.
This table compares Tessera Holding Corporation and STR Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tessera Holding Corporation||-22.54%||8.10%||3.38%|
Tessera Holding Corporation beats STR Holdings on 12 of the 14 factors compared between the two stocks.
Tessera Holding Corporation Company Profile
Tessera Holding Corporation is a product and technology licensing company. The Company’s technologies and intellectual property are deployed, in areas, such as audio, computational imaging, computer vision, mobile computing and communications, memory, data storage, three dimensional (3D) semiconductor interconnect and packaging. The Company delivers smart sight and sound solutions, and 3D semiconductor interconnect solutions for mobile devices, consumer electronics, and automotive markets. The Company also addresses technologies, such as Internet of Things (IoT) and augmented reality/virtual reality (AR/VR). It offers audio solutions for mobile devices, home theater systems and cinema. The Company’s subsidiaries include Tessera Technologies, Inc., DTS, Inc., Invensas Corporation and FotoNation.
STR Holdings Company Profile
STR Holdings, Inc. is a holding company. The Company is a provider of encapsulants to the solar industry. Encapsulant is a component used to protect solar cells and hold solar modules together. The Company has developed ethylene-vinyl acetate (EVA)-based encapsulants for use in commercial solar module manufacturing. The Company’s encapsulant formulations offer a range of properties and processing attributes, including various curing times and temperatures that align with the requirements of its customers’ individual lamination processes and module constructions. The Company’s formulations can be used in both crystalline silicon and thin-film modules. The Company operates production facilities in Llanera, Asturias, Spain and Shajiabang, Changshu, Jiangsu Province, China. It has a total annual production capacity of approximately 5.1 gigawatts. Its customers are solar module manufacturers located mainly in North America, Europe and Asia.
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