Contrasting Cohu (COHU) & The Competition

Cohu (NASDAQ:COHU) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare Cohu to similar companies based on the strength of its institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Volatility and Risk

Cohu has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Cohu’s peers have a beta of 3.10, meaning that their average stock price is 210% more volatile than the S&P 500.

Dividends

Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Cohu pays out -46.2% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 30.0% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Cohu and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cohu	1	1	7	1	2.80
Cohu Competitors	3487	12297	25679	990	2.57

Cohu currently has a consensus price target of $74.38, indicating a potential upside of 43.33%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 38.58%. Given Cohu’s stronger consensus rating and higher probable upside, analysts plainly believe Cohu is more favorable than its peers.

Profitability

This table compares Cohu and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cohu	-3.97%	1.48%	0.92%
Cohu Competitors	-1,280.74%	-126.55%	-4.15%

Earnings & Valuation

This table compares Cohu and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cohu	$569.31 million	-$74.27 million	-99.79
Cohu Competitors	$1,259.14 billion	$2.48 billion	8.74

Cohu’s peers have higher revenue and earnings than Cohu. Cohu is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

94.7% of Cohu shares are held by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 3.0% of Cohu shares are held by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Cohu beats its peers on 9 of the 15 factors compared.

Cohu Company Profile

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.