Analyzing Aehr Test Systems (AEHR) and Mettler-Toledo International (MTD)

Aehr Test Systems (NASDAQ: AEHR) and Mettler-Toledo International (NYSE:MTD) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

26.8% of Aehr Test Systems shares are held by institutional investors. Comparatively, 91.9% of Mettler-Toledo International shares are held by institutional investors. 21.9% of Aehr Test Systems shares are held by company insiders. Comparatively, 5.2% of Mettler-Toledo International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Aehr Test Systems and Mettler-Toledo International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aehr Test Systems 0 0 0 0 N/A
Mettler-Toledo International 0 5 4 0 2.44

Mettler-Toledo International has a consensus price target of $638.57, indicating a potential upside of 0.48%. Given Mettler-Toledo International’s higher probable upside, analysts plainly believe Mettler-Toledo International is more favorable than Aehr Test Systems.

Earnings and Valuation

This table compares Aehr Test Systems and Mettler-Toledo International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aehr Test Systems $18.90 million 2.75 -$5.65 million ($0.20) -11.90
Mettler-Toledo International $2.51 billion 6.48 $384.37 million $16.48 38.56

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

Profitability

This table compares Aehr Test Systems and Mettler-Toledo International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aehr Test Systems -13.92% -23.69% -12.00%
Mettler-Toledo International 16.44% 96.81% 19.64%

Volatility and Risk

Aehr Test Systems has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Mettler-Toledo International has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Summary

Mettler-Toledo International beats Aehr Test Systems on 12 of the 13 factors compared between the two stocks.

About Aehr Test Systems

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.

About Mettler-Toledo International

Mettler-Toledo International Inc. is a supplier of precision instruments and services. The Company operates through five segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations and Other. The Company manufactures weighing instruments for use in laboratory, industrial, packaging, logistics and food retailing applications. The Company is also a provider of analytical instruments for use in life science, reaction engineering and real-time analytic systems used in drug and chemical compound development, and process analytics instruments used for in-line measurement in production processes. In addition, the Company is also a supplier of end-of-line inspection systems used in production and packaging for food, pharmaceutical and other industries. The Company serves food and beverage producers; food retailers; chemical, specialty chemicals and cosmetics companies, and the transportation and logistics industry, among others.

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