Aehr Test Systems (NASDAQ:AEHR – Get Free Report) and Astera Labs (NASDAQ:ALAB – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Volatility & Risk
Aehr Test Systems has a beta of 3.1, indicating that its stock price is 210% more volatile than the S&P 500. Comparatively, Astera Labs has a beta of 3.84, indicating that its stock price is 284% more volatile than the S&P 500.
Valuation & Earnings
This table compares Aehr Test Systems and Astera Labs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aehr Test Systems | $50.00 million | 67.52 | -$7.13 million | ($0.24) | -431.21 |
| Astera Labs | $1.20 billion | 41.42 | $219.13 million | $2.02 | 142.04 |
Astera Labs has higher revenue and earnings than Aehr Test Systems. Aehr Test Systems is trading at a lower price-to-earnings ratio than Astera Labs, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
69.7% of Aehr Test Systems shares are held by institutional investors. Comparatively, 60.5% of Astera Labs shares are held by institutional investors. 6.8% of Aehr Test Systems shares are held by insiders. Comparatively, 10.4% of Astera Labs shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Aehr Test Systems and Astera Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aehr Test Systems | -14.25% | -3.83% | -3.36% |
| Astera Labs | 30.74% | 19.24% | 17.27% |
Analyst Recommendations
This is a summary of recent recommendations for Aehr Test Systems and Astera Labs, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aehr Test Systems | 1 | 0 | 4 | 2 | 3.00 |
| Astera Labs | 0 | 8 | 14 | 1 | 2.70 |
Aehr Test Systems currently has a consensus target price of $136.67, suggesting a potential upside of 32.06%. Astera Labs has a consensus target price of $333.00, suggesting a potential upside of 16.06%. Given Aehr Test Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Aehr Test Systems is more favorable than Astera Labs.
Summary
Astera Labs beats Aehr Test Systems on 10 of the 15 factors compared between the two stocks.
About Aehr Test Systems
Aehr Test Systems provides test solutions for testing, burning-in, and semiconductor devices in wafer level, singulated die, and package part form, and installed systems worldwide. Its product portfolio includes FOX-XP and FOX-NP systems that are full wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize range of devices, including silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The company also offers FOX-CP system, a low-cost single-wafer compact test solution for logic, memory, and photonic devices; FOX WaferPak Contactor, a full wafer contactor capable of testing wafers up to 300mm that enables integrated circuit manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. In addition, it provides FOX DiePak Carrier, a reusable temporary package that enables IC manufacturers to perform final test and burn-in of bare die and modules; and FOX DiePak Loader. The company was incorporated in 1977 and is headquartered in Fremont, California.
About Astera Labs
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.
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