Cohu (NASDAQ: COHU) and Xcerra Corporation (NASDAQ:XCRA) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
Valuation and Earnings
This table compares Cohu and Xcerra Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Cohu||$282.08 million||2.49||$3.03 million||$0.98||25.35|
|Xcerra Corporation||$390.77 million||1.36||$22.55 million||$0.42||23.31|
Xcerra Corporation has higher revenue and earnings than Cohu. Xcerra Corporation is trading at a lower price-to-earnings ratio than Cohu, indicating that it is currently the more affordable of the two stocks.
Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Xcerra Corporation does not pay a dividend. Cohu pays out 24.5% of its earnings in the form of a dividend.
This is a summary of recent ratings and recommmendations for Cohu and Xcerra Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cohu presently has a consensus price target of $24.50, indicating a potential downside of 1.37%. Xcerra Corporation has a consensus price target of $10.25, indicating a potential upside of 4.70%. Given Xcerra Corporation’s higher possible upside, analysts plainly believe Xcerra Corporation is more favorable than Cohu.
This table compares Cohu and Xcerra Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
83.5% of Cohu shares are held by institutional investors. Comparatively, 84.5% of Xcerra Corporation shares are held by institutional investors. 6.5% of Cohu shares are held by company insiders. Comparatively, 2.6% of Xcerra Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Cohu has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Xcerra Corporation has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Cohu beats Xcerra Corporation on 9 of the 16 factors compared between the two stocks.
Cohu, Inc. is a supplier of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems used by global semiconductor manufacturers and test subcontractors. It develops, manufactures, sells and services a line of equipment capable of handling a range of integrated circuits and light-emitting diodes. It operates through semiconductor equipment segment. It offers products for the pick-and-place, gravity-feed, test-in-strip and turret handling, MEMS, burn-in and system-level test markets. It sells various products, including Delta MATRiX, Delta Pyramid, Delta Eclipse, Delta LinX, Rasco SO1000, Rasco SO2000, Rasco Saturn and Jupiter, Rasco Jaguar, Ismeca NY32, Ismeca NY20 and Delta Fusion HD. Its manufacturing operations are located in Malacca, Malaysia (handlers); Poway, California (thermal subsystems); Laguna, the Philippines (kits and contactors); Kolbermoor, Germany (handlers), and Osaka, Japan (contactors).
About Xcerra Corporation
Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.
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