BTU International (NASDAQ: BTUI) and Aehr Test Systems (NASDAQ:AEHR) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Risk & Volatility
BTU International has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for BTU International and Aehr Test Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Aehr Test Systems||0||0||0||0||N/A|
Valuation and Earnings
This table compares BTU International and Aehr Test Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aehr Test Systems||$18.90 million||3.53||-$5.65 million||($0.20)||-15.50|
BTU International has higher earnings, but lower revenue than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than BTU International, indicating that it is currently the more affordable of the two stocks.
This table compares BTU International and Aehr Test Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Aehr Test Systems||-13.92%||-26.85%||-12.73%|
Institutional & Insider Ownership
27.2% of Aehr Test Systems shares are owned by institutional investors. 21.9% of Aehr Test Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
BTU International beats Aehr Test Systems on 5 of the 9 factors compared between the two stocks.
BTU International Company Profile
BTU International, Inc. (BTU) is engaged in designing, manufacturing, selling and servicing of thermal processing equipment and related process controls for use in the electronics, alternative energy, automotive and other industries. The Company operates as a single business segment called Thermal Processing Capital Equipment. It is engaged in the supply of solder reflow systems used for surface mount applications in printed circuit board assembly. The Company’s thermal processing equipment is used in low temperature curing/encapsulation, hybrid integrated circuit manufacturing, integrated circuit packaging and sealing, and processing multi-chip modules. In addition, the equipment is used for solar cell processing, sintering nuclear fuel for commercial power generation, as well as brazing and the sintering of ceramics and powdered metals. Its alternative energy business addresses two markets, the manufacturing of solar cells and nuclear fuels.
Aehr Test Systems Company Profile
Aehr Test Systems is engaged in the designing, manufacturing and marketing of advanced test and burn-in products to the semiconductor manufacturing industry. The Company manufactures and markets full wafer contact test systems, test during burn-in systems, test fixtures, die carriers and related accessories. The Company’s principal products are the Advanced Burn-In and Test System (ABTS), the FOX full wafer contact parallel test and burn-in systems, WaferPak full wafer contactor, the DiePak carrier and test fixtures. The Company develops, manufactures and sells systems, which are designed to reduce the cost of testing and to perform reliability screening, or burn-in, of complex logic devices, memory integrated circuits (ICs), sensors and optical devices. These systems can be used to perform parallel testing and burn-in of packaged ICs, singulated bare die or ICs still in wafer form.
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