Aehr Test Systems (NASDAQ:AEHR) vs. Geospace Technologies (NASDAQ:GEOS) Critical Comparison

Aehr Test Systems (NASDAQ:AEHR) and Geospace Technologies (NASDAQ:GEOS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Aehr Test Systems and Geospace Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aehr Test Systems	0	0	1	0	3.00
Geospace Technologies	0	0	0	0	0.00

Aehr Test Systems currently has a consensus target price of $25.00, suggesting a potential upside of 68.69%. Given Aehr Test Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Aehr Test Systems is more favorable than Geospace Technologies.

Institutional & Insider Ownership

69.7% of Aehr Test Systems shares are held by institutional investors. Comparatively, 57.2% of Geospace Technologies shares are held by institutional investors. 6.2% of Aehr Test Systems shares are held by insiders. Comparatively, 7.6% of Geospace Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Aehr Test Systems and Geospace Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aehr Test Systems	$66.22 million	6.66	$33.16 million	$0.78	19.00
Geospace Technologies	$135.60 million	1.29	-$6.58 million	($1.28)	-10.68

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aehr Test Systems	37.17%	21.15%	18.13%
Geospace Technologies	-14.03%	0.69%	0.62%

Volatility and Risk

Aehr Test Systems has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500. Comparatively, Geospace Technologies has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Summary

Aehr Test Systems beats Geospace Technologies on 12 of the 14 factors compared between the two stocks.

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.

About Geospace Technologies

Geospace Technologies Corporation designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company operates through three segments: Oil and Gas Markets, Adjacent Markets, and Emerging Markets. The Oil and Gas Markets segment offers wireless seismic data acquisition systems and reservoir characterization products and services, as well as traditional seismic exploration products, such as geophones, hydrophones, leader wires, connectors, cables, marine streamer retrieval and steering devices, and other seismic products. The Adjacent Markets segment provides industrial products, including imaging equipment, water meter products, remote shut-off valves, and Internet of Things platform, as well as seismic sensors for vibration monitoring and geotechnical applications, such as mine safety and earthquake detection applications; and electronic pre-press products that employ direct thermal imaging, direct-to-screen printing systems, and digital inkjet printing technologies targeted at the commercial and industrial graphics, textile, and flexographic printing industries. The Emerging Markets segment designs and sells products used for border and perimeter security surveillance, cross-border tunneling detection, and other products targeted at movement monitoring, intrusion detection, and situational awareness. This segment serves various agencies of the United States government, including the Department of Defense, Department of Energy, Department of Homeland Security, and other agencies. The company operates in Asia, Canada, Europe, South America, the United States, and internationally. Geospace Technologies Corporation was founded in 1980 and is headquartered in Houston, Texas.