Cohu (NASDAQ:COHU) and Frequency Electronics (NASDAQ:FEIM) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
This is a summary of current recommendations for Cohu and Frequency Electronics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cohu presently has a consensus price target of $29.33, indicating a potential upside of 67.81%. Given Cohu’s higher probable upside, analysts clearly believe Cohu is more favorable than Frequency Electronics.
Volatility & Risk
Cohu has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Frequency Electronics does not pay a dividend. Cohu pays out 17.9% of its earnings in the form of a dividend.
Insider and Institutional Ownership
72.2% of Cohu shares are held by institutional investors. Comparatively, 46.4% of Frequency Electronics shares are held by institutional investors. 3.9% of Cohu shares are held by insiders. Comparatively, 41.7% of Frequency Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Cohu and Frequency Electronics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cohu||$352.70 million||2.02||$32.84 million||$1.34||13.04|
|Frequency Electronics||$39.41 million||2.28||-$23.77 million||N/A||N/A|
Cohu has higher revenue and earnings than Frequency Electronics.
This table compares Cohu and Frequency Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cohu beats Frequency Electronics on 10 of the 13 factors compared between the two stocks.
Cohu Company Profile
Cohu, Inc., through its subsidiaries, engages in the development, manufacture, sale, and servicing of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors, and thermal sub-systems for semiconductor manufacturers and test subcontractors worldwide. It offers pick-and-place handlers; thermal handler for microprocessors, graphics processors, and other integrated circuits; pick-and-place platform for fabless and outsourced semiconductor assembly and test customers, as well as for integrated device manufacturers; a platform for assembly automation; gravity-feed and test-in-strip handlers; and turret handler for testing and inspection of integrated circuits, LEDs, and discrete devices. The company also provides MEMS test modules that generate physical stimuli for testing of sensor integrated circuits; thermal sub-systems that offer temperature control of the integrated circuit during the testing process; contactor solutions; spares; and a range of device dedication kits that enable handlers to process various semiconductor packages. Cohu, Inc. markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. Cohu, Inc. was founded in 1947 and is headquartered in Poway, California.
Frequency Electronics Company Profile
Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision time, and frequency generation and synchronization primarily incorporating global positioning system technologies into communications systems, computer networks, test equipment, and military command and control terminals for ground and satellite link applications. The company's products are used in commercial, government satellite payload systems, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, counter measures, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.
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