Contrasting Cascade Microtech (CSCD) and Aehr Test Systems (AEHR)

Cascade Microtech (NASDAQ: CSCD) and Aehr Test Systems (NASDAQ:AEHR) are both small-cap testing & measuring equipment companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Valuation and Earnings

This table compares Cascade Microtech and Aehr Test Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cascade Microtech N/A N/A N/A $0.72 30.36
Aehr Test Systems $18.90 million 3.20 -$5.65 million ($0.20) -13.85

Cascade Microtech has higher earnings, but lower revenue than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Cascade Microtech, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

26.8% of Aehr Test Systems shares are owned by institutional investors. 21.9% of Aehr Test Systems shares are owned by company 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.

Risk & Volatility

Cascade Microtech has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Cascade Microtech and Aehr Test Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cascade Microtech 5.72% 7.19% 5.97%
Aehr Test Systems -13.92% -23.69% -12.00%

Analyst Ratings

This is a breakdown of current ratings and target prices for Cascade Microtech and Aehr Test Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cascade Microtech 0 0 0 0 N/A
Aehr Test Systems 0 0 0 0 N/A

Summary

Cascade Microtech beats Aehr Test Systems on 6 of the 9 factors compared between the two stocks.

Cascade Microtech Company Profile

Cascade Microtech, Inc. is a designer, developer, manufacturer and marketer of wafer probing, thermal and reliability solutions for the electrical measurement and testing of semiconductor devices. The Company operates in two business segments: Systems and Probes. The Systems business segment is engaged in the sale of probe stations, thermal subsystems and reliability test systems. The Probes segment is engaged in the sale of analytical probes and production probe cards. The Company designs, manufactures and sells multiple product lines, including probe stations, thermal subsystems, reliability test systems, analytical probes, production probe cards, and various services and accessories. Probing systems are used in the development of semiconductor processes and designs. The 1164 Reliability Test System is a modular and scalable test platform that can be used in a range of reliability test applications.

Aehr Test Systems Company Profile

Aehr Test Systems is engaged in the designing, manufacturing and marketing of advanced test and burn-in products to the semiconductor manufacturing industry. The Company manufactures and markets full wafer contact test systems, test during burn-in systems, test fixtures, die carriers and related accessories. The Company’s principal products are the Advanced Burn-In and Test System (ABTS), the FOX full wafer contact parallel test and burn-in systems, WaferPak full wafer contactor, the DiePak carrier and test fixtures. The Company develops, manufactures and sells systems, which are designed to reduce the cost of testing and to perform reliability screening, or burn-in, of complex logic devices, memory integrated circuits (ICs), sensors and optical devices. These systems can be used to perform parallel testing and burn-in of packaged ICs, singulated bare die or ICs still in wafer form.

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