SemiLEDS (NASDAQ:LEDS – Get Free Report) and Cohu (NASDAQ:COHU – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
Valuation & Earnings
This table compares SemiLEDS and Cohu”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SemiLEDS | $25.93 million | 0.62 | -$1.13 million | ($0.13) | -15.00 |
| Cohu | $452.96 million | 5.31 | -$74.27 million | ($0.83) | -61.22 |
SemiLEDS has higher earnings, but lower revenue than Cohu. Cohu is trading at a lower price-to-earnings ratio than SemiLEDS, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for SemiLEDS and Cohu, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SemiLEDS | 1 | 0 | 0 | 0 | 1.00 |
| Cohu | 1 | 1 | 7 | 1 | 2.80 |
Cohu has a consensus target price of $68.75, suggesting a potential upside of 35.31%. Given Cohu’s stronger consensus rating and higher probable upside, analysts plainly believe Cohu is more favorable than SemiLEDS.
Risk & Volatility
SemiLEDS has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Cohu has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Institutional and Insider Ownership
76.3% of SemiLEDS shares are held by institutional investors. Comparatively, 94.7% of Cohu shares are held by institutional investors. 58.5% of SemiLEDS shares are held by insiders. Comparatively, 3.0% of Cohu shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares SemiLEDS and Cohu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SemiLEDS | -3.92% | -43.09% | -6.39% |
| Cohu | -7.43% | -1.96% | -1.30% |
Summary
Cohu beats SemiLEDS on 10 of the 15 factors compared between the two stocks.
About SemiLEDS
SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.
About Cohu
Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, California.
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