Aehr Test Systems (AEHR) vs Veeco Instruments Inc. (VECO)

Aehr Test Systems and Veeco Instruments Inc. are both Semiconductor Equipment & Materials companies. Veeco Instruments Inc. is the larger, with a market value of $2.0B against $1.6B — 1.3× the size. Aehr Test Systems has negative trailing earnings, so its P/E is not meaningful; Veeco Instruments Inc. trades at 80.7×. Veeco Instruments Inc. grew revenue faster over the last twelve months: 6.58% against −15.2%. Veeco Instruments Inc. has the higher net margin (0.00% vs −14.3%) and the higher return on invested capital (2.05% vs −8.57%). Across the 18 metrics below, Veeco Instruments Inc. leads on 15 and Aehr Test Systems on 3.

Valuation

Metric AEHR VECO Semiconductor Equipment & Materials median
P/E n/m 80.74 33.70
P/S 30.47 2.85 4.22
P/B 6.94 2.24 2.94
Price to free cash flow n/m 16.46 31.49
EV/EBITDA n/m 44.09 22.64
EV/Sales 28.18 2.54 4.97
Earnings yield (0.48%) 1.24% 2.02%
Free cash flow yield (0.35%) 6.08% 2.27%

Profitability

Metric AEHR VECO Semiconductor Equipment & Materials median
Gross margin 35.30% 37.39% 46.86%
Operating margin (28.30%) 3.02% 12.02%
Net margin (14.25%) 0.00% 10.16%
Free cash flow margin (10.75%) 17.32% 6.73%
Return on equity (4.16%) 0.00% 5.31%
Return on assets (3.61%) 0.00% 4.10%
Return on invested capital (8.57%) 2.05% 6.36%

Growth

Metric AEHR VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) (15.21%) 6.58% 15.82%
EPS growth (last fiscal year) (76.92%) (52.03%) (4.56%)
Revenue growth, 5-year CAGR 24.67% 7.90% 10.11%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AEHR VECO Semiconductor Equipment & Materials median
Debt to equity 0.00 0.25 0.09
Current ratio 10.33 3.87 3.56
Net debt to EBITDA 10.96 (2.95) (0.49)

Dividend

Metric AEHR VECO Semiconductor Equipment & Materials median
Dividend yield — — 0.59%
Payout ratio — — 0.16

Size

Metric AEHR VECO Semiconductor Equipment & Materials median
Market cap 1.61b 2.03b 3.04b

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