Head-to-Head: Cohu Inc VS. Xcerra Corporation

When it comes to small-cap computer and technology companies, both Cohu Inc (NASDAQ:$COHU) and Xcerra Corporation (NASDAQ:$XCRA) are names that often come to mind. So how do the two companies stack up against one another? Let’s take a look at the numbers.

Profitability

Cohu has a Return on Equity of 11.59%, a Return on Assets of 7.76%, and Net Margins of 6.21%. Xcerra Corporation, on the other hand, has a Return on Equity of 9.08%, a Return on Assets of 6.71% and Net Margins of 5.77%. Cohu has the edge in all three of these factors.

Earnings

Cohu has a Gross Revenue of $314.92 million, and an EBITDA of $37.41 million. It also has a Price/Sales Ratio of 2.12, an EPS of $0.69, and a Price/Earnings Ratio of 34.55. Xcerra boasts a Gross Revenue of $390.77 million, an EBITDA $34.79 million, a Price/Sales Ratio of 1.38, an EPS of $0.42 and a Price/Earnings Ratio of 23.45.

This gives Cohu lower earnings, but higher revenue than its rival. Xcerra, on the other hand, is considered the more affordable of the two stocks based on its lower Price/Earnings Ratio.

Dividends

Cohu boasts a dividend yield of 1.0% and an annualized dividend of $0.24 per share, with 34.8% of its earnings being paid out in the form of a dividend. Xcerra, meanwhile, pays out no dividend.

What are Analysts Saying?

Cohu currently holds 3 ‘Buy’ ratings and 1 ‘Hold’ rating, for the aggregate rating score of 2.75. Xcerra Corporation has 5 ‘Hold’ ratings, giving it a 2.00 rating score.

Meanwhile, Cohu has a target price of $23.75, indicating a potential downside of 0.38%, while Xcerra Corporation has a consensus $10.25 target price, suggesting a potential upside of 4.06%. The target price indicates that analysts clearly believe that Xcerra is more favorable than its rival.

Insider & Institutional Ownership

Institutional and investor ownership can be an indicator that those respective groups have faith in the stock. This is especially the case for institutions, who operate on the principle of sound investments.

Cohu, for its part, has 83.9% shares owned by institutions. Xcerra has 86.1% institutional ownership in their stock. Cohu’s stock is 6.0% owned by insiders, whereas Xcerra’s stock is 2.6% owned by insiders.

What’s the Risk?

Cohu currently has a beta of 0.91. This indicates that the stock is 9% less volatile than the S&P 500. Meanwhile, Xcerra Corporation is 61% more volatile than the S&P 500, with a beta of 1.61.