Comparing Entegris (ENTG) and PDF Solutions (PDFS)

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

Earnings & Valuation

This table compares Entegris and PDF Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entegris $1.18 billion 4.08 $97.14 million $0.97 35.00
PDF Solutions $107.46 million 4.56 $9.10 million $0.14 109.57

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

Dividends

Entegris pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. PDF Solutions does not pay a dividend. Entegris pays out 7.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

96.5% of Entegris shares are held by institutional investors. Comparatively, 86.2% of PDF Solutions shares are held by institutional investors. 1.5% of Entegris shares are held by company insiders. Comparatively, 15.0% of PDF Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Entegris and PDF Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entegris 10.73% 18.82% 10.52%
PDF Solutions 4.08% 2.10% 1.88%

Analyst Recommendations

This is a breakdown of recent ratings for Entegris and PDF Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entegris 0 3 7 1 2.82
PDF Solutions 0 1 1 0 2.50

Entegris presently has a consensus target price of $32.30, indicating a potential downside of 4.86%. PDF Solutions has a consensus target price of $20.00, indicating a potential upside of 30.38%. Given PDF Solutions’ higher possible upside, analysts plainly believe PDF Solutions is more favorable than Entegris.

Risk & Volatility

Entegris has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, PDF Solutions has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Summary

Entegris beats PDF Solutions on 12 of the 17 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 PDF Solutions

PDF Solutions, Inc. is a provider of infrastructure technologies and services for integrated circuits (IC). The Company’s technologies and services focus on the IC manufacturing process life cycle. It operates in the segment of licensing and implementation of yield improvement solutions for integrated circuit manufacturers. The Company’s solutions combine software, test chips, an electrical wafer test system, methodologies and professional services. The Company has developed solutions for yield simulation, analysis, loss detection, and improvement. Its characterization vehicle infrastructure (CVi) enables customers to electrically characterize the manufacturing process, and establish fail-rate information needed to calibrate manufacturing yield models and prioritize yield improvement activities. Its Exensio YieldAware solution combines software and services to enable customers to collect and combine product test data and equipment signals during production.

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