Temenos (OTCMKTS:TMNSF) versus PDF Solutions (NASDAQ:PDFS) Financial Analysis

Temenos (OTCMKTS:TMNSF) and PDF Solutions (NASDAQ:PDFS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Valuation and Earnings

This table compares Temenos and PDF Solutions’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Temenos	$1.00 billion	N/A	$134.68 million	N/A	N/A
PDF Solutions	$165.84 million	7.49	$3.11 million	$0.07	462.00

Temenos has higher revenue and earnings than PDF Solutions.

Analyst Recommendations

This is a summary of current recommendations for Temenos and PDF Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Temenos	0	0	0	0	N/A
PDF Solutions	0	0	2	0	3.00

PDF Solutions has a consensus price target of $46.00, indicating a potential upside of 42.24%. Given PDF Solutions’ higher possible upside, analysts clearly believe PDF Solutions is more favorable than Temenos.

Profitability

This table compares Temenos and PDF Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Temenos	N/A	N/A	N/A
PDF Solutions	1.87%	6.09%	4.73%

Institutional and Insider Ownership

79.5% of PDF Solutions shares are held by institutional investors. 11.2% of PDF Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Temenos has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, PDF Solutions has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Summary

PDF Solutions beats Temenos on 8 of the 10 factors compared between the two stocks.

About Temenos

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. Temenos AG was founded in 1993 and is based in Geneva, Switzerland.

About PDF Solutions

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides Design-For-Inspection (DFI) systems, such as DFI On-Chip Instruments; eProbe Non-Contact E-Beam Tool; and Characterization Vehicle (CV) system, which includes CV Test Chips and pdFasTest Electrical Testers, as well as Exensio characterization software, designed to analyze the measurements collected using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. PDF Solutions, Inc. was founded in 1991 and is headquartered in Santa Clara, California.