Aehr Test Systems (NASDAQ:AEHR – Get Free Report) and onsemi (NASDAQ:ON – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations for Aehr Test Systems and onsemi, as provided by MarketBeat.
| 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 presently has a consensus target price of $132.50, indicating a potential upside of 56.55%. onsemi has a consensus target price of $95.56, indicating a potential upside of 23.26%. Given Aehr Test Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Aehr Test Systems is more favorable than onsemi.
Risk & Volatility
Valuation & Earnings
This table compares Aehr Test Systems and onsemi”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aehr Test Systems | $50.00 million | 55.29 | -$7.13 million | ($0.24) | -352.67 |
| onsemi | $6.00 billion | 5.03 | $121.00 million | $1.56 | 49.70 |
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.
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% |
Insider & Institutional Ownership
69.7% of Aehr Test Systems shares are held by institutional investors. Comparatively, 97.7% of onsemi shares are held by institutional investors. 4.6% of Aehr Test Systems shares are held by insiders. Comparatively, 0.3% of onsemi 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.
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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