Head-To-Head Comparison: Aehr Test Systems (NASDAQ:AEHR) versus Advantest (OTCMKTS:ATEYY)

Aehr Test Systems (NASDAQ:AEHR) and Advantest (OTCMKTS:ATEYY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Risk & Volatility

Aehr Test Systems has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500. Comparatively, Advantest has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Institutional and Insider Ownership

69.7% of Aehr Test Systems shares are owned by institutional investors. Comparatively, 0.0% of Advantest shares are owned by institutional investors. 6.2% of Aehr Test Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aehr Test Systems	-6.63%	-0.15%	-0.13%
Advantest	19.95%	29.15%	18.39%

Earnings and Valuation

This table compares Aehr Test Systems and Advantest”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aehr Test Systems	$58.97 million	7.81	-$3.91 million	($0.13)	-119.08
Advantest	$5.12 billion	N/A	$1.06 billion	$1.22	65.28

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

Analyst Recommendations

This is a breakdown of current ratings for Aehr Test Systems and Advantest, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aehr Test Systems	0	0	0	0	0.00
Advantest	0	1	0	0	2.00

Summary

Advantest beats Aehr Test Systems on 8 of the 11 factors compared between the two stocks.

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 Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics related products in Japan, the Americas, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Services, Support and Others segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease and other businesses. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.