Xcerra Corp (NASDAQ: XCRA) and Chipmos Technologies (NASDAQ:IMOS) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares Xcerra Corp and Chipmos Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xcerra Corp $355.08 million 1.49 $23.08 million $0.42 23.24
Chipmos Technologies $611.37 million 25.93 $182.71 million $2.52 7.35

Chipmos Technologies has higher revenue and earnings than Xcerra Corp. Chipmos Technologies is trading at a lower price-to-earnings ratio than Xcerra Corp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xcerra Corp and Chipmos Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xcerra Corp 9.78% 16.40% 11.90%
Chipmos Technologies 19.20% 9.74% 5.09%

Risk and Volatility

Xcerra Corp has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Chipmos Technologies has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Xcerra Corp and Chipmos Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xcerra Corp 0 5 0 0 2.00
Chipmos Technologies 0 0 0 0 N/A

Xcerra Corp presently has a consensus target price of $10.25, indicating a potential upside of 5.02%. Given Xcerra Corp’s higher probable upside, research analysts clearly believe Xcerra Corp is more favorable than Chipmos Technologies.

Insider and Institutional Ownership

86.3% of Xcerra Corp shares are owned by institutional investors. Comparatively, 19.4% of Chipmos Technologies shares are owned by institutional investors. 2.6% of Xcerra Corp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Chipmos Technologies pays an annual dividend of $1.49 per share and has a dividend yield of 8.0%. Xcerra Corp does not pay a dividend. Chipmos Technologies pays out 59.1% of its earnings in the form of a dividend.

Summary

Xcerra Corp beats Chipmos Technologies on 8 of the 14 factors compared between the two stocks.

Xcerra Corp Company Profile

Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.

Chipmos Technologies Company Profile

ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.

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