Qorvo (NASDAQ: QRVO) and Xcerra Corporation (NASDAQ:XCRA) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Qorvo and Xcerra Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qorvo 1 12 11 0 2.42
Xcerra Corporation 0 5 0 0 2.00

Qorvo currently has a consensus price target of $73.95, suggesting a potential upside of 3.86%. Xcerra Corporation has a consensus price target of $10.25, suggesting a potential upside of 3.74%. Given Qorvo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Qorvo is more favorable than Xcerra Corporation.

Profitability

This table compares Qorvo and Xcerra Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qorvo -1.40% 10.10% 7.54%
Xcerra Corporation 5.77% 9.08% 6.71%

Earnings & Valuation

This table compares Qorvo and Xcerra Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Qorvo $2.97 billion 3.05 $789.88 million ($0.34) -209.41
Xcerra Corporation $390.77 million 1.38 $34.79 million $0.42 23.52

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

Institutional & Insider Ownership

94.3% of Qorvo shares are owned by institutional investors. Comparatively, 84.7% of Xcerra Corporation shares are owned by institutional investors. 0.9% of Qorvo shares are owned by insiders. Comparatively, 2.6% of Xcerra Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Qorvo has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Xcerra Corporation has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Summary

Qorvo beats Xcerra Corporation on 9 of the 14 factors compared between the two stocks.

About Qorvo

Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, infrastructure and defense and aerospace applications. The Company designs, develops, manufactures and markets its products to the United States and international original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). The MP segment is a supplier of radio frequency (RF) solutions that perform various functions in the cellular radio front end section of smartphones and other cellular devices. The IDP segment is a supplier of RF solutions that support various global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, Internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. It operates design, sales and manufacturing facilities located throughout Asia, Europe and North America.

About Xcerra Corporation

Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.

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