AXT (NASDAQ:AXTI – Get Rating) and EMCORE (NASDAQ:EMKR – Get Rating) are both small cap IT and technology companies, but which is the best investment? We’ll compare the two companies based on valuation strength, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.
This table compares the net margins, return on equity and return on assets of AXT and EMCORE.
|Net margins||Return on equity||return on assets|
This is a breakdown of recent recommendations and price targets for AXT and EMCORE, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
AXT currently has a consensus price target of $11.00, suggesting a potential upside of 86.44%. EMCORE has a consensus price target of $10.25, suggesting a potential upside of 197.10%. Given EMCORE’s likely higher upside, analysts clearly believe that EMCORE is more favorable than AXT.
Benefits and evaluation
This table compares gross revenue, earnings per share and valuation of AXT and EMCORE.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|AXT||$137.39 million||1.84||$14.57 million||$0.33||17.88|
|EMCORE||$158.44 million||0.81||$25.64 million||$0.67||5.15|
EMCORE has higher revenue and profit than AXT. EMCORE trades at a lower price-to-earnings ratio than AXT, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
53.6% of AXT shares are held by institutional investors. Comparatively, 74.8% of EMCORE shares are held by institutional investors. 8.0% of AXT shares are held by insiders. Comparatively, 1.9% of EMCORE shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.
Risk and Volatility
AXT has a beta of 2.12, which suggests its stock price is 112% more volatile than the S&P 500. In comparison, EMCORE has a beta of 1.38, which suggests its stock price is 38% more volatile than the S&P 500.
EMCORE beats AXT on 8 of the 14 factors compared between the two stocks.
About AXT (Get a rating)
AXT, Inc. designs, develops, manufactures and distributes compound and single element semiconductor substrates. It produces semiconductor substrates using its proprietary vertical gradient gel technology. The Company offers Indium Phosphide for use in data center connectivity using light/lasers, 5G communications, fiber optic lasers and detectors, passive optical networks, silicon photonics, photonics integrated circuits , terrestrial solar cells, RF amplifier and switching, infrared light emitting diode. (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications and solar cells; and semiconductor GaAs substrates used in LEDs, displays, laser and LED printheads, 3D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting and drilling . Additionally, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photovoltaic cells, infrared detectors and carrier wafers for LEDs. Besides, it provides purified 6N+ and 7N+ gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles and pBN insulating parts. AXT, Inc. sells its products through a direct sales force in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea and abroad. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.
About EMCORE (Get a rating)
EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optical products in the United States, Canada, Asia, Europe and worldwide. It operates in two segments, aerospace and defense, and broadband. The Company offers navigation systems and inertial sensing products, such as fiber optic gyroscopes which include gyroscopes, inertial measurement units (IMU) and inertial navigation systems (INS), as well as QMEMS gyroscopes, accelerometers, IMUs and INS products primarily for the aerospace and defense markets; and defense optoelectronics including the optiva platform’s fiber optic transport systems and erbium-doped fiber amplifiers, as well as microwave flange mount rugged optical transmitters, receivers and delay lines. It also provides cable television (CATV) lasers and transmitters which are used in round-trip broadband, sub-assembly components, analog fiber optic transmitters, quadrature amplitude modulation transmitters and CATV fiber amplifiers. In addition, the company offers high power gain chip products, photodiode products, and fiber-to-the-premises (FTTP) and data center GPON chip products for telecommunications markets; and lasers, receivers, and photodetector components for wireless, distributed sensing, light sensing, and ranging applications. It serves the cable television, optical sensing, telecommunications, data center, and navigation and defense optoelectronics markets. The Company sells its products through a direct sales force, application engineers, third-party sales representatives and distributors. EMCORE Corporation was founded in 1984 and is based in Alhambra, California.
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