Reviewing Keysight Technologies (NYSE:KEYS) and Aehr Test Systems (NASDAQ:AEHR)

Aehr Test Systems (NASDAQ:AEHR) and Keysight Technologies (NYSE:KEYS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Aehr Test Systems and Keysight Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aehr Test Systems	$66.22 million	5.10	$33.16 million	$0.78	14.55
Keysight Technologies	$4.98 billion	5.55	$614.00 million	$4.26	37.67

Keysight Technologies has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Keysight Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aehr Test Systems and Keysight Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aehr Test Systems	37.17%	21.15%	18.13%
Keysight Technologies	14.50%	19.65%	10.71%

Risk and Volatility

Aehr Test Systems has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500. Comparatively, Keysight Technologies has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aehr Test Systems and Keysight Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aehr Test Systems	0	0	1	0	3.00
Keysight Technologies	1	0	8	0	2.78

Aehr Test Systems presently has a consensus target price of $25.00, indicating a potential upside of 120.26%. Keysight Technologies has a consensus target price of $183.00, indicating a potential upside of 14.03%. Given Aehr Test Systems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Aehr Test Systems is more favorable than Keysight Technologies.

Insider & Institutional Ownership

69.7% of Aehr Test Systems shares are held by institutional investors. Comparatively, 84.6% of Keysight Technologies shares are held by institutional investors. 6.2% of Aehr Test Systems shares are held by company insiders. Comparatively, 0.6% of Keysight Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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.

About Keysight Technologies

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers electronic design automation (EDA) software; instrument measurement software, instrument workflow software, and software testing; digital multimeter, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; and spectrum analyzers, network analyzers, logic analyzers, protocol analyzers and exercisers, bit error ratio testers, noise figure analyzers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. The company also provides waveform and function generators, arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, and over-the-air test; application and threat intelligence, cloud test, cyber training simulator, network test hardware, synthetic traffic generators, protocol and load test, network security test, and network modeling; bypass switches, clock synchronization, cloud visibility, network and application monitoring, network packet brokers, and network taps; and application-specific test systems, photonic test and measurement products, and MMIC millimeter-wave and microwave devices. In addition, it offers product support, technical support, installation, training, engineering, and integration services. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.