Amtech Systems (NASDAQ:ASYS – Get Free Report) and Aehr Test Systems (NASDAQ:AEHR – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Volatility & Risk
Amtech Systems has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 3.36, suggesting that its stock price is 236% more volatile than the S&P 500.
Profitability
This table compares Amtech Systems and Aehr Test Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amtech Systems | 4.90% | 6.33% | 4.00% |
| Aehr Test Systems | -14.25% | -3.83% | -3.36% |
Insider and Institutional Ownership
50.2% of Amtech Systems shares are owned by institutional investors. Comparatively, 69.7% of Aehr Test Systems shares are owned by institutional investors. 26.9% of Amtech Systems shares are owned by company insiders. Comparatively, 4.6% of Aehr Test Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Amtech Systems and Aehr Test Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amtech Systems | 0 | 3 | 2 | 0 | 2.40 |
| Aehr Test Systems | 1 | 1 | 5 | 1 | 2.75 |
Amtech Systems presently has a consensus price target of $22.00, suggesting a potential upside of 98.38%. Aehr Test Systems has a consensus price target of $118.75, suggesting a potential upside of 141.56%. Given Aehr Test Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Aehr Test Systems is more favorable than Amtech Systems.
Earnings and Valuation
This table compares Amtech Systems and Aehr Test Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amtech Systems | $79.36 million | 2.45 | -$30.33 million | $0.26 | 42.65 |
| Aehr Test Systems | $50.00 million | 32.11 | -$7.13 million | ($0.24) | -204.83 |
Aehr Test Systems has lower revenue, but higher earnings than Amtech Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Amtech Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Aehr Test Systems beats Amtech Systems on 8 of the 15 factors compared between the two stocks.
About Amtech Systems
Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.
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.
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