Comparing Ichor (NASDAQ:ICHR) and Cohu (NASDAQ:COHU)

Cohu (NASDAQ:COHU) and Ichor (NASDAQ:ICHR) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Valuation and Earnings

This table compares Cohu and Ichor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cohu	$452.96 million	5.51	-$74.27 million	($0.83)	-63.54
Ichor	$947.65 million	1.67	-$52.78 million	($1.17)	-36.09

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

Institutional and Insider Ownership

94.7% of Cohu shares are held by institutional investors. Comparatively, 94.8% of Ichor shares are held by institutional investors. 3.0% of Cohu shares are held by insiders. Comparatively, 1.7% of Ichor shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Cohu has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Ichor has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Cohu and Ichor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cohu	1	1	7	1	2.80
Ichor	1	2	6	1	2.70

Cohu currently has a consensus price target of $68.75, indicating a potential upside of 30.36%. Ichor has a consensus price target of $85.89, indicating a potential upside of 103.38%. Given Ichor’s higher probable upside, analysts plainly believe Ichor is more favorable than Cohu.

Profitability

This table compares Cohu and Ichor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cohu	-7.43%	-1.96%	-1.30%
Ichor	-3.97%	0.47%	0.33%

Summary

Ichor beats Cohu on 9 of the 14 factors compared between the two stocks.

About Cohu

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, California.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.