Entegris (NASDAQ: ENTG) and Xcerra Corporation (NASDAQ:XCRA) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Insider and Institutional Ownership

95.4% of Entegris shares are owned by institutional investors. Comparatively, 86.4% of Xcerra Corporation shares are owned by institutional investors. 1.7% of Entegris shares are owned by company insiders. Comparatively, 2.6% of Xcerra Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Entegris has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Xcerra Corporation has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Profitability

This table compares Entegris and Xcerra Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entegris 10.73% 18.82% 10.52%
Xcerra Corporation 5.77% 9.08% 6.71%

Analyst Ratings

This is a summary of current ratings and target prices for Entegris and Xcerra Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entegris 0 3 6 1 2.80
Xcerra Corporation 0 5 0 0 2.00

Entegris currently has a consensus price target of $31.78, indicating a potential downside of 2.97%. Xcerra Corporation has a consensus price target of $10.25, indicating a potential upside of 4.06%. Given Xcerra Corporation’s higher possible upside, analysts plainly believe Xcerra Corporation is more favorable than Entegris.

Earnings & Valuation

This table compares Entegris and Xcerra Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entegris $1.25 billion 3.71 $298.17 million $0.97 33.76
Xcerra Corporation $390.77 million 1.38 $34.79 million $0.42 23.45

Entegris has higher revenue and earnings than Xcerra Corporation. Xcerra Corporation is trading at a lower price-to-earnings ratio than Entegris, indicating that it is currently the more affordable of the two stocks.

Summary

Entegris beats Xcerra Corporation on 12 of the 15 factors compared between the two stocks.

About Entegris

Entegris, Inc. is a global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. The Company operates in three business segments: Specialty Chemicals and Engineered Materials (SCEM), Advanced Materials Handling (AMH) and Microcontamination Control (MC). The SCEM segment provides process chemistries, gases, materials and delivery systems to support semiconductor and other manufacturing processes. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a set of applications in the semiconductor industry and other high-technology industries. AMH offers wafer solutions, chemical containers and fluidics. MC offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

About Xcerra Corporation

Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.

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