Critical Analysis: Tessera Holding Corporation (XPER) versus STR Holdings (NASDAQ:STRI)
Tessera Holding Corporation (NASDAQ: XPER) and STR Holdings (NASDAQ:STRI) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitabiliy, valuation, earnings, dividends and risk.
Institutional and Insider Ownership
99.8% of Tessera Holding Corporation shares are owned by institutional investors. 2.4% of Tessera Holding Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Tessera Holding Corporation and STR Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tessera Holding Corporation||N/A||N/A||N/A||$0.55||59.00|
|STR Holdings||$17.40 million||N/A||-$10.40 million||N/A||N/A|
Tessera Holding Corporation has higher revenue, but lower earnings than STR Holdings.
Tessera Holding Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. STR Holdings does not pay a dividend. Tessera Holding Corporation pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Tessera Holding Corporation and STR Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tessera Holding Corporation||10.11%||12.62%||7.49%|
This is a summary of current ratings and target prices for Tessera Holding Corporation and STR Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tessera Holding Corporation||0||0||1||0||3.00|
Tessera Holding Corporation currently has a consensus price target of $53.00, indicating a potential upside of 63.33%. Given Tessera Holding Corporation’s higher possible upside, research analysts plainly believe Tessera Holding Corporation is more favorable than STR Holdings.
Tessera Holding Corporation beats STR Holdings on 8 of the 10 factors compared between the two stocks.
About Tessera Holding Corporation
Tessera Holding Corporation is a product and technology licensing company. The Company’s technologies and intellectual property are deployed, in areas, such as audio, computational imaging, computer vision, mobile computing and communications, memory, data storage, three dimensional (3D) semiconductor interconnect and packaging. The Company delivers smart sight and sound solutions, and 3D semiconductor interconnect solutions for mobile devices, consumer electronics, and automotive markets. The Company also addresses technologies, such as Internet of Things (IoT) and augmented reality/virtual reality (AR/VR). It offers audio solutions for mobile devices, home theater systems and cinema. The Company’s subsidiaries include Tessera Technologies, Inc., DTS, Inc., Invensas Corporation and FotoNation.
About STR Holdings
STR Holdings, Inc. is a holding company. The Company is a provider of encapsulants to the solar industry. Encapsulant is a component used to protect solar cells and hold solar modules together. The Company has developed ethylene-vinyl acetate (EVA)-based encapsulants for use in commercial solar module manufacturing. The Company’s encapsulant formulations offer a range of properties and processing attributes, including various curing times and temperatures that align with the requirements of its customers’ individual lamination processes and module constructions. The Company’s formulations can be used in both crystalline silicon and thin-film modules. The Company operates production facilities in Llanera, Asturias, Spain and Shajiabang, Changshu, Jiangsu Province, China. It has a total annual production capacity of approximately 5.1 gigawatts. Its customers are solar module manufacturers located mainly in North America, Europe and Asia.
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