Head-To-Head Survey: Aehr Test Systems (NASDAQ:AEHR) versus Astera Labs (NASDAQ:ALAB)

Astera Labs (NASDAQ:ALAB) and Aehr Test Systems (NASDAQ:AEHR) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astera Labs	30.74%	19.24%	17.27%
Aehr Test Systems	-14.25%	-3.83%	-3.36%

Valuation & Earnings

This table compares Astera Labs and Aehr Test Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$852.53 million	64.88	$219.13 million	$2.02	157.82
Aehr Test Systems	$50.00 million	84.31	-$7.13 million	($0.24)	-538.46

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 & Insider Ownership

60.5% of Astera Labs shares are owned by institutional investors. Comparatively, 69.7% of Aehr Test Systems shares are owned by institutional investors. 10.4% of Astera Labs shares are owned by insiders. Comparatively, 6.8% of Aehr Test Systems 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.

Risk and Volatility

Astera Labs has a beta of 3.84, meaning that its share price is 284% more volatile than the S&P 500. Comparatively, Aehr Test Systems has a beta of 3.1, meaning that its share price is 210% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Astera Labs and Aehr Test Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	10	13	0	2.57
Aehr Test Systems	1	0	3	2	3.00

Astera Labs presently has a consensus price target of $325.25, indicating a potential upside of 2.02%. Aehr Test Systems has a consensus price target of $117.50, indicating a potential downside of 9.08%. Given Astera Labs’ higher probable upside, analysts clearly believe Astera Labs is more favorable than Aehr Test Systems.

Summary

Astera Labs beats Aehr Test Systems on 11 of the 15 factors compared between the two stocks.

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.

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.