Reviewing PDF Solutions (PDFS) & Its Rivals

PDF Solutions (NASDAQ: PDFS) is one of 21 public companies in the “Semiconductor Equipment & Testing” industry, but how does it weigh in compared to its peers? We will compare PDF Solutions to related companies based on the strength of its risk, profitability, earnings, institutional ownership, dividends, analyst recommendations and valuation.

Risk & Volatility

PDF Solutions has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, PDF Solutions’ peers have a beta of 1.21, meaning that their average share price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares PDF Solutions and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
PDF Solutions $104.27 million $9.44 million 87.56
PDF Solutions Competitors $1.64 billion $379.05 million 10.73

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

Profitability

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

Net Margins Return on Equity Return on Assets
PDF Solutions 5.29% 2.78% 2.49%
PDF Solutions Competitors 6.59% 12.25% 7.10%

Analyst Recommendations

This is a breakdown of current recommendations for PDF Solutions and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PDF Solutions 0 1 2 0 2.67
PDF Solutions Competitors 57 492 1264 20 2.68

PDF Solutions currently has a consensus target price of $23.33, suggesting a potential upside of 48.05%. As a group, “Semiconductor Equipment & Testing” companies have a potential upside of 6.86%. Given PDF Solutions’ higher possible upside, equities analysts plainly believe PDF Solutions is more favorable than its peers.

Insider & Institutional Ownership

82.5% of PDF Solutions shares are held by institutional investors. Comparatively, 79.8% of shares of all “Semiconductor Equipment & Testing” companies are held by institutional investors. 16.2% of PDF Solutions shares are held by company insiders. Comparatively, 14.7% of shares of all “Semiconductor Equipment & Testing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

PDF Solutions peers beat PDF Solutions on 8 of the 13 factors compared.

About PDF Solutions

PDF Solutions, Inc. is a provider of infrastructure technologies and services for integrated circuits (IC). The Company’s technologies and services focus on the IC manufacturing process life cycle. It operates in the segment of licensing and implementation of yield improvement solutions for integrated circuit manufacturers. The Company’s solutions combine software, test chips, an electrical wafer test system, methodologies and professional services. The Company has developed solutions for yield simulation, analysis, loss detection, and improvement. Its characterization vehicle infrastructure (CVi) enables customers to electrically characterize the manufacturing process, and establish fail-rate information needed to calibrate manufacturing yield models and prioritize yield improvement activities. Its Exensio YieldAware solution combines software and services to enable customers to collect and combine product test data and equipment signals during production.

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