Xcerra Corporation (NASDAQ: XCRA) and Mattson Technology (NASDAQ:MTSN) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Xcerra Corporation 5.77% 9.08% 6.71%
Mattson Technology -13.95% -18.69% -13.50%

Risk and Volatility

Xcerra Corporation has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Mattson Technology has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Xcerra Corporation and Mattson Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xcerra Corporation 0 5 0 0 2.00
Mattson Technology 0 0 0 0 N/A

Xcerra Corporation presently has a consensus price target of $10.25, indicating a potential upside of 4.70%. Given Xcerra Corporation’s higher possible upside, research analysts clearly believe Xcerra Corporation is more favorable than Mattson Technology.

Valuation and Earnings

This table compares Xcerra Corporation and Mattson Technology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Xcerra Corporation $390.77 million 1.36 $22.55 million $0.42 23.31
Mattson Technology N/A N/A N/A $0.13 27.69

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

Institutional and Insider Ownership

84.5% of Xcerra Corporation shares are owned by institutional investors. 2.6% of Xcerra Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Xcerra Corporation beats Mattson Technology on 8 of the 9 factors compared between the two stocks.

Xcerra Corporation Company Profile

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.

Mattson Technology Company Profile

Mattson Technology, Inc. is a United States-based company, which provides a global semiconductor wafer processing equipment. The Company is engaged in designing, manufacturing, marketing and supporting semiconductor wafer processing equipment, which uses in the fabrication of integrated circuits. It operates in four product sectors: dry strip, etch, conventional rapid thermal processing and millisecond anneal. It is a supplier of dry strip and rapid thermal processing (RTP) equipment for processing to semiconductor manufactures across the world for the fabrication of various devices. It offers its technology to provide capital equipment that deliver processing capability for integrated circuit fabrication to its customers. Its product support offerings include product specific upgrade kits, labor and parts, labor bank program and process engineering services. Its designing and manufacturing centers are located in the United States, Canada and Germany.

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