Head to Head Review: Xcerra (XCRA) vs. Itron (ITRI)

Xcerra (NASDAQ: XCRA) and Itron (NASDAQ:ITRI) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Insider and Institutional Ownership

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82.4% of Xcerra shares are held by institutional investors. Comparatively, 94.4% of Itron shares are held by institutional investors. 2.6% of Xcerra shares are held by insiders. Comparatively, 2.0% of Itron shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xcerra $390.77 million 1.71 $22.55 million $0.49 24.88
Itron $2.02 billion 1.36 $57.29 million $3.06 22.86

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

Risk and Volatility

Xcerra has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Itron has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Xcerra and Itron, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xcerra 0 1 4 0 2.80
Itron 0 3 6 2 2.91

Xcerra presently has a consensus target price of $11.83, indicating a potential downside of 2.93%. Itron has a consensus target price of $84.40, indicating a potential upside of 20.66%. Given Itron’s stronger consensus rating and higher possible upside, analysts clearly believe Itron is more favorable than Xcerra.

Profitability

This table compares Xcerra and Itron’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xcerra 9.85% 16.22% 12.20%
Itron 2.84% 15.84% 6.53%

Summary

Itron beats Xcerra on 8 of the 15 factors compared between the two stocks.

Xcerra Company Profile

Xcerra Corporation provides test and handling capital equipment, interface products, and test fixtures and related services to the semiconductor and electronics manufacturing industries worldwide. It operates through two segments, Semiconductor Test Solutions and Electronic Manufacturing Solutions. The company offers Diamond series platform that offers high-density packaging for the testing of microcontrollers, and consumer and digital-based ASSP and ASIC devices; X-Series platform that offers configurations for the testing of analog-based ASSP and ASIC, power, automotive, mixed signal, and RF applications; and ASL platform for testing linear, low-end mixed signal, precision analog, and power management devices. It provides test handlers, including pick-and-place, gravity, strip, and microelectromechanical systems; bare board printed circuit board (PCB) test systems; test contactors for standard, power, and RF markets; probe pins; and loaded PCB test fixtures. In addition, the company engages in the installation and maintenance of test and handling systems, including servicing of spare parts manufactured by third parties; and provision of parts and labor warranties on test and handling systems, and instruments, as well as training on the maintenance and operation of test and handling systems. It markets and sells its products through internal direct sales organization and external distributors. The company was formerly known as LTX-Credence Corporation and changed its name to Xcerra Corporation in May 2014. Xcerra Corporation was founded in 1976 and is headquartered in Norwood, Massachusetts.

Itron Company Profile

Itron, Inc., a technology company, provides end-to-end solutions that measures, manages, and analyzes energy and water use worldwide. The company operates through three segments: Electricity, Gas, and Water. It offers standard electromechanical and electronic, gas, and water and heat meters; and smart electricity, gas, and water meters and communication modules. The company also provides prepayment systems, including smart key, keypad, and smart card communication technologies; smart systems, such as handheld, mobile, and fixed network collection technologies; smart network technologies; meter data management software; and knowledge application solutions. In addition, it offers installation and software implementation; professional services comprising consulting and analysis; and project management, installation, and post-sale maintenance support services. The company offers its standard metering systems to measure electricity, natural gas, water, or thermal energy; smart metering systems to collect, store, and transmit meter data to handheld computers, mobile units, telephone, radio frequency, cellular, power line carrier, and fixed networks. Itron, Inc. markets its products directly through its sales force, as well as through indirect sales force consisting of distributors, sales representatives, partners, and meter manufacturer representatives to utilities and municipalities. The company was founded in 1977 and is headquartered in Liberty Lake, Washington.

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