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 $2.8B against $2.3B — 1.2× the size. Aehr Test Systems has negative trailing earnings, so its P/E is not meaningful; Veeco Instruments Inc. trades at 113×. Veeco Instruments Inc. grew revenue faster over the last twelve months: −2.52% against −15.2%. Veeco Instruments Inc. has the higher net margin (3.35% vs −14.3%) and the higher return on invested capital (1.64% 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 112.62 45.03
P/S 37.17 3.82 4.64
P/B 8.47 2.89 3.22
Price to free cash flow n/m 30.65 48.18
EV/EBITDA n/m 63.71 33.11
EV/Sales 34.88 3.57 5.52
Earnings yield (0.40%) 0.89% 1.41%
Free cash flow yield (0.29%) 3.26% 1.67%

Profitability

Metric AEHR VECO Semiconductor Equipment & Materials median
Gross margin 35.30% 37.92% 43.95%
Operating margin (28.30%) 2.69% 10.32%
Net margin (14.25%) 3.35% 7.45%
Free cash flow margin (10.75%) 12.47% 6.77%
Return on equity (4.16%) 2.60% 4.78%
Return on assets (3.61%) 1.70% 3.62%
Return on invested capital (8.57%) 1.64% 6.10%

Growth

Metric AEHR VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) (15.21%) (2.52%) 14.60%
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 3.93 3.66
Net debt to EBITDA 10.96 (2.95) (0.49)

Dividend

Metric AEHR VECO Semiconductor Equipment & Materials median
Dividend yield — — 0.42%
Payout ratio — — 0.19

Size

Metric AEHR VECO Semiconductor Equipment & Materials median
Market cap 2.26b 2.76b 3.80b

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