Aehr Test Systems (NASDAQ:AEHR) versus ams-OSRAM (OTCMKTS:AMSSY) Head to Head Comparison

ams-OSRAM (OTCMKTS:AMSSY) and Aehr Test Systems (NASDAQ:AEHR) are both mid-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

69.7% of Aehr Test Systems shares are held by institutional investors. 4.6% of Aehr Test Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

ams-OSRAM has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 3.47, suggesting that its share price is 247% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ams-OSRAM and Aehr Test Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	0	2	1	0	2.33
Aehr Test Systems	1	1	5	1	2.75

Aehr Test Systems has a consensus target price of $132.50, indicating a potential upside of 43.80%. Given Aehr Test Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Aehr Test Systems is more favorable than ams-OSRAM.

Earnings & Valuation

This table compares ams-OSRAM and Aehr Test Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	$3.76 billion	0.80	-$147.08 million	($1.91)	-7.89
Aehr Test Systems	$50.00 million	60.19	-$7.13 million	($0.24)	-383.92

Aehr Test Systems has lower revenue, but higher earnings than ams-OSRAM. Aehr Test Systems is trading at a lower price-to-earnings ratio than ams-OSRAM, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ams-OSRAM and Aehr Test Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	-9.74%	-7.58%	-1.01%
Aehr Test Systems	-14.25%	-3.83%	-3.36%

Summary

Aehr Test Systems beats ams-OSRAM on 11 of the 15 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.

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.