Aehr Test Systems (NASDAQ:AEHR – Get Free Report) and onsemi (NASDAQ:ON – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Profitability
This table compares Aehr Test Systems and onsemi’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% |
| onsemi | 10.17% | 14.06% | 8.31% |
Risk & 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, onsemi has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aehr Test Systems | 1 | 1 | 5 | 1 | 2.75 |
| onsemi | 0 | 15 | 15 | 0 | 2.50 |
Aehr Test Systems currently has a consensus price target of $132.50, indicating a potential upside of 48.26%. onsemi has a consensus price target of $95.56, indicating a potential upside of 15.82%. Given Aehr Test Systems’ stronger consensus rating and higher probable upside, equities analysts clearly believe Aehr Test Systems is more favorable than onsemi.
Earnings and Valuation
This table compares Aehr Test Systems and onsemi”s 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 | 58.38 | -$7.13 million | ($0.24) | -372.38 |
| onsemi | $6.00 billion | 5.36 | $121.00 million | $1.56 | 52.89 |
onsemi has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than onsemi, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
69.7% of Aehr Test Systems shares are owned by institutional investors. Comparatively, 97.7% of onsemi shares are owned by institutional investors. 4.6% of Aehr Test Systems shares are owned by insiders. Comparatively, 0.3% of onsemi shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
onsemi beats Aehr Test Systems on 9 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 onsemi
onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu
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