Analyzing Cognex (NASDAQ:CGNX) & COREwafer Industries (OTCMKTS:AHIX)

Cognex (NASDAQ:CGNX) and COREwafer Industries (OTCMKTS:AHIX) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cognex and COREwafer Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognex	1	6	7	1	2.53
COREwafer Industries	0	0	0	0	0.00

Cognex presently has a consensus target price of $41.62, indicating a potential upside of 22.15%. Given Cognex’s stronger consensus rating and higher possible upside, research analysts clearly believe Cognex is more favorable than COREwafer Industries.

Insider & Institutional Ownership

88.1% of Cognex shares are owned by institutional investors. 1.6% of Cognex shares are owned by company insiders. Comparatively, 39.8% of COREwafer Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cognex and COREwafer Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cognex	12.80%	6.37%	4.81%
COREwafer Industries	-255.83%	N/A	N/A

Risk and Volatility

Cognex has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, COREwafer Industries has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cognex and COREwafer Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognex	$914.52 million	6.25	$106.17 million	$0.68	50.10
COREwafer Industries	$140,000.00	261.24	-$470,000.00	N/A	N/A

Cognex has higher revenue and earnings than COREwafer Industries.

Summary

Cognex beats COREwafer Industries on 10 of the 13 factors compared between the two stocks.

About Cognex

Cognex Corporation provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks worldwide. Its machine vision products are used to automate the manufacturing and tracking of discrete items, including mobile phones, electric vehicle batteries, and e-commerce packages by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. The company offers VisionPro software, a suite of patented vision tools for advanced programming; QuickBuild that allows customers to build vision applications with a graphical, flowchart-based programming interface; and Cognex deep learning vision software. It also provides a range of inspection tasks, including part location, identification, measurement, assembly verification, and robotic guidance; vision sensors for vision applications, such as checking the presence and size of parts; and the In-Sight product line of vision systems and sensors. In addition, the company offers DataMan, an image-based barcode readers and barcode verifiers. It sells its products to automotive, logistics, consumer electronics, medical-related, semiconductor, consumer products, food and beverage, and others, as well as through a network of distributors and integrators. The company was incorporated in 1981 and is headquartered in Natick, Massachusetts.

About COREwafer Industries

Aluf Holdings, Inc., through its subsidiaries, develops proprietary software, software algorithms, and hardware for testing and data mining of computer hard drives, memory, and magnetics, as well as semiconductor and nanotechnology- based device components. It builds advanced test solutions for engineering and manufacturing sectors to verify devices made correctly; reliability tests to predict when the device will fail during usage; and characterization tests to verify the manufacturing operation in building the device. Its product lines include Predictive, Demonstrated, and Quantitative (PDQ) – Wafer Level Reliability (WLR), a wafer level reliability test software package; the ASUR SDR software suite that provides an environment in which users can test semiconductor wafers by using the JEDEC compliant PDQ-WLR algorithm library; and ASUR PDR, which provides an immediate view of stresses and device behaviors through the use of its real-time plotting tool. The company also provides shipping and coordination services for retail and wholesale, electronics, and manufacturing companies worldwide; and operates cloud based tracking and e-logistics. In addition, it manufactures and processes CBD distillate, a THC-free, purified form of CBD. The company was formerly known as COREwafer Industries, Inc. and changed its name to Aluf Holdings, Inc. in August 2015. Aluf Holdings, Inc. was incorporated in 1977 and is headquartered in Hollywood, Florida.