Critical Survey: STR Holdings (STRI) vs. Tessera Holding Corporation (XPER)

STR Holdings (OTCMKTS: STRI) and Tessera Holding Corporation (NASDAQ:XPER) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

Tessera Holding Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 4.2%. STR Holdings does not pay a dividend. Tessera Holding Corporation pays out -55.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.0% of STR Holdings shares are held by institutional investors. Comparatively, 99.6% of Tessera Holding Corporation shares are held by institutional investors. 10.3% of STR Holdings shares are held by company insiders. Comparatively, 2.4% of Tessera Holding Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares STR Holdings and Tessera Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STR Holdings -63.78% -28.89% -24.24%
Tessera Holding Corporation -22.54% 8.10% 3.38%

Analyst Ratings

This is a breakdown of current recommendations and price targets for STR Holdings and Tessera Holding Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STR Holdings 0 0 0 0 N/A
Tessera Holding Corporation 0 1 0 0 2.00

Volatility and Risk

STR Holdings has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Tessera Holding Corporation has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Earnings & Valuation

This table compares STR Holdings and Tessera Holding Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
STR Holdings $20.11 million 0.26 -$15.87 million ($0.61) -0.44
Tessera Holding Corporation $259.57 million 3.64 $56.08 million ($1.44) -13.30

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

Summary

Tessera Holding Corporation beats STR Holdings on 10 of the 12 factors compared between the two stocks.

STR Holdings Company Profile

STR Holdings, Inc. is a holding company. The Company is a provider of encapsulants to the solar industry. Encapsulant is a component used to protect solar cells and hold solar modules together. The Company has developed ethylene-vinyl acetate (EVA)-based encapsulants for use in commercial solar module manufacturing. The Company’s encapsulant formulations offer a range of properties and processing attributes, including various curing times and temperatures that align with the requirements of its customers’ individual lamination processes and module constructions. The Company’s formulations can be used in both crystalline silicon and thin-film modules. The Company operates production facilities in Llanera, Asturias, Spain and Shajiabang, Changshu, Jiangsu Province, China. It has a total annual production capacity of approximately 5.1 gigawatts. Its customers are solar module manufacturers located mainly in North America, Europe and Asia.

Tessera Holding Corporation Company Profile

Tessera Holding Corporation is a product and technology licensing company. The Company’s technologies and intellectual property are deployed, in areas, such as audio, computational imaging, computer vision, mobile computing and communications, memory, data storage, three dimensional (3D) semiconductor interconnect and packaging. The Company delivers smart sight and sound solutions, and 3D semiconductor interconnect solutions for mobile devices, consumer electronics, and automotive markets. The Company also addresses technologies, such as Internet of Things (IoT) and augmented reality/virtual reality (AR/VR). It offers audio solutions for mobile devices, home theater systems and cinema. The Company’s subsidiaries include Tessera Technologies, Inc., DTS, Inc., Invensas Corporation and FotoNation.

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