Astera Labs (NASDAQ:ALAB – Get Free Report) and Aehr Test Systems (NASDAQ:AEHR – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Insider and Institutional Ownership
60.5% of Astera Labs shares are owned by institutional investors. Comparatively, 69.7% of Aehr Test Systems shares are owned by institutional investors. 10.4% of Astera Labs shares are owned by insiders. Comparatively, 6.8% of Aehr Test Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Astera Labs and Aehr Test Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Astera Labs | 30.74% | 19.24% | 17.27% |
| Aehr Test Systems | -14.25% | -3.83% | -3.36% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astera Labs | 0 | 8 | 14 | 1 | 2.70 |
| Aehr Test Systems | 1 | 0 | 4 | 2 | 3.00 |
Astera Labs currently has a consensus price target of $333.00, suggesting a potential upside of 4.01%. Aehr Test Systems has a consensus price target of $136.67, suggesting a potential downside of 6.14%. Given Astera Labs’ higher probable upside, research analysts plainly believe Astera Labs is more favorable than Aehr Test Systems.
Risk & Volatility
Astera Labs has a beta of 3.84, suggesting that its share price is 284% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 3.1, suggesting that its share price is 210% more volatile than the S&P 500.
Valuation and Earnings
This table compares Astera Labs 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 | |
| Astera Labs | $852.53 million | 65.15 | $219.13 million | $2.02 | 158.50 |
| Aehr Test Systems | $50.00 million | 95.00 | -$7.13 million | ($0.24) | -606.71 |
Astera Labs has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Astera Labs, indicating that it is currently the more affordable of the two stocks.
Summary
Astera Labs beats Aehr Test Systems on 11 of the 15 factors compared between the two stocks.
About Astera Labs
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.
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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