Analyzing inTEST (NYSE:INTT) and Aixtron (OTCMKTS:AIXXF)

Aixtron (OTCMKTS:AIXXF) and inTEST (NYSE:INTT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

46.3% of Aixtron shares are owned by institutional investors. Comparatively, 63.2% of inTEST shares are owned by institutional investors. 5.5% of inTEST shares are owned 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.

Valuation and Earnings

This table compares Aixtron and inTEST’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aixtron	N/A	N/A	N/A	($0.52)	-32.08
inTEST	$122.64 million	0.67	$9.34 million	$0.65	10.10

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

Profitability

This table compares Aixtron and inTEST’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aixtron	N/A	N/A	N/A
inTEST	4.27%	7.64%	5.03%

Analyst Ratings

This is a summary of current ratings and price targets for Aixtron and inTEST, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aixtron	0	0	0	0	N/A
inTEST	0	2	1	0	2.33

inTEST has a consensus price target of $13.00, indicating a potential upside of 98.02%. Given inTEST’s higher probable upside, analysts clearly believe inTEST is more favorable than Aixtron.

Summary

inTEST beats Aixtron on 10 of the 10 factors compared between the two stocks.

About Aixtron

AIXTRON SE, together with its subsidiaries, provides deposition equipment to the semiconductor industry in Asia, Europe, and the Americas. It develops, produces, and installs equipment for the deposition of semiconductor materials; and offers deposition processes, consulting, training, customer support, and other related services, as well as peripheral devices and services for the operation of its systems. The company's product portfolio includes MOCVD, CVD and PECVD, and OVPD and PVPD systems. It also supplies deposition equipment for volume production, as well as for research and development and pre-series productions. The company's products are used in a range of compound semiconductors and optoelectronic applications, as well as lasers, LED, display technologies, optical and wireless data transmission, SiC and GaN power electronics, and other applications. AIXTRON SE was founded in 1983 and is headquartered in Herzogenrath, Germany.

About inTEST

inTEST Corporation provides test and process technology solutions for use in manufacturing and testing in automotive, defense/aerospace, industrial, life sciences, security, and semiconductor markets worldwide. The company operates through three segments: Electronic Test, Environmental Technologies, and Process Technologies. The Electronic Test segment offers in2, Cobal, and LS series manipulators that hold various test heads and enable an operator to reposition a test head for alternate use with various probers or handlers on a test floor; and docking hardware products, which protect the interface contacts and ensure proper repeatable and precise alignment between the test head’s interface board and the prober’s probing assembly. This segment also provides tester interfaces that offer electrical connections between the tester and the wafer prober or IC handler; scorpion flying probe test systems that designs and manufactures robotics-based electronic test equipment; and BRiZ automated test and programming services. Its products are used in production testing of wafers and specialized packaged ICs in back-end testing by semiconductor manufacturers. The Environmental Technologies segment provides ThermoStream products that are used in the semi market as a stand-alone temperature management tool, or in various electronic test applications; thermal chambers; thermal platforms; Thermonics temperature conditioning products that offer tempered gas or fluid; and ultra-cold storage solutions, including biomedical freezers, refrigerators, and mobile storage solutions. The Process Technologies segment offers EKOHEAT and EASYHEAT induction heating systems; and digital streaming and image capturing solutions. The company markets and sells its products to semiconductor manufacturers, third-party foundries, test and assembly providers, and original equipment manufacturers. inTEST Corporation was incorporated in 1981 and is headquartered in Mount Laurel, New Jersey.