Reviewing Photronics Inc. (PLAB)’s and Cohu Inc. (NASDAQ:COHU)’s results

Photronics Inc. (NASDAQ:PLAB) and Cohu Inc. (NASDAQ:COHU) have been rivals in the Semiconductor Equipment & Materials for quite some time. Below is a review of each business including various aspects such as dividends, institutional ownership, analyst recommendations, profitability, risk, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Photronics Inc. 535.28M 1.36 42.05M 0.48 19.22
Cohu Inc. 365.22M 1.97 31.47M 1.49 11.72

Table 1 shows the top-line revenue, earnings per share and valuation for Photronics Inc. and Cohu Inc. Cohu Inc. is observed to has lower revenue, but higher earnings than Photronics Inc. Presently more expensive of the two stocks is the company with a higher P/E ratio. Photronics Inc. is thus presently the expensive of the two stocks because it has a higher P/E ratio.

Profitability

Table 2 shows us Photronics Inc. and Cohu Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Photronics Inc. 7.86% 4.5% 3.3%
Cohu Inc. 8.62% 10.5% 7.3%

Volatility and Risk

Photronics Inc.’s 0.67 beta indicates that its volatility is 33.00% less volatile than that of Standard & Poor’s 500. In other hand, Cohu Inc. has beta of 1.3 which is 30.00% more volatile than Standard & Poor’s 500.

Liquidity

Photronics Inc.’s Current Ratio and Quick Ratio are 3.2 and 3 respectively. The Current Ratio and Quick Ratio of its competitor Cohu Inc. are 3.6 and 2.9 respectively. Cohu Inc. therefore has a better chance of paying off short and long-term obligations compared to Photronics Inc.

Dividends

On the other side, $0.24 per share with a dividend yield of 1.35% for Cohu Inc. No dividend is paid out for Photronics Inc.

Analyst Recommendations

The next table highlights the shown recommendations and ratings for Photronics Inc. and Cohu Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Photronics Inc. 0 0 0 0.00
Cohu Inc. 0 1 1 2.50

Cohu Inc. on the other hand boasts of a $25 average target price and a 41.48% potential upside.

Institutional and Insider Ownership

Roughly 98.4% of Photronics Inc. shares are held by institutional investors while 74.3% of Cohu Inc. are owned by institutional investors. About 0.6% of Photronics Inc.’s share are held by insiders. Comparatively, Cohu Inc. has 1.4% of it’s share held by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Photronics Inc. -5.88% -8.52% -7.31% 6.78% 0.05% 7.1%
Cohu Inc. -11.17% -4.68% -25.66% -29.05% -22.28% -20.68%

For the past year Photronics Inc. had bullish trend while Cohu Inc. had bearish trend.

Summary

Cohu Inc. beats on 10 of the 15 factors Photronics Inc.

Photronics, Inc., together with its subsidiaries, manufactures and sells photomasks in Taiwan, Korea, the United States, Europe, and internationally. The company offers photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits for use in the manufacture of semiconductors and flat panel displays (FPDs), as well as that are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, FPDs, and other types of electrical and optical components. It sells its products to semiconductor or FPD designers, manufacturers, and foundries, as well as to other high performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was founded in 1969 and is based in Brookfield, Connecticut.

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.