Tuya (NYSE:TUYA) and PDF Solutions (NASDAQ:PDFS) Financial Analysis

PDF Solutions (NASDAQ:PDFS) and Tuya (NYSE:TUYA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Profitability

This table compares PDF Solutions and Tuya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PDF Solutions	1.87%	6.09%	4.73%
Tuya	-26.23%	-4.66%	-4.27%

Valuation and Earnings

This table compares PDF Solutions and Tuya’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDF Solutions	$165.84 million	7.73	$3.11 million	$0.07	474.86
Tuya	$229.99 million	3.99	-$60.31 million	($0.11)	-16.55

PDF Solutions has higher earnings, but lower revenue than Tuya. Tuya is trading at a lower price-to-earnings ratio than PDF Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PDF Solutions and Tuya, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDF Solutions	0	0	2	0	3.00
Tuya	0	0	2	0	3.00

PDF Solutions currently has a consensus price target of $46.00, suggesting a potential upside of 38.39%. Tuya has a consensus price target of $2.70, suggesting a potential upside of 48.35%. Given Tuya’s higher probable upside, analysts clearly believe Tuya is more favorable than PDF Solutions.

Insider and Institutional Ownership

79.5% of PDF Solutions shares are owned by institutional investors. Comparatively, 11.5% of Tuya shares are owned by institutional investors. 11.2% of PDF Solutions shares are owned by insiders. Comparatively, 2.1% of Tuya shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

PDF Solutions has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Tuya has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Summary

PDF Solutions beats Tuya on 10 of the 12 factors compared between the two stocks.

About PDF Solutions

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides Design-For-Inspection (DFI) systems, such as DFI On-Chip Instruments; eProbe Non-Contact E-Beam Tool; and Characterization Vehicle (CV) system, which includes CV Test Chips and pdFasTest Electrical Testers, as well as Exensio characterization software, designed to analyze the measurements collected using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. PDF Solutions, Inc. was founded in 1991 and is headquartered in Santa Clara, California.

About Tuya

Tuya Inc. offers Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides IoT platform-as-a-service that enables brands, original equipment manufacturers, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers a wide range of cloud-based value-added services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company sells finished smart devices. It offers its solutions to smart home, smart business, healthcare, education, agriculture, outdoors and sport, and entertainment industries. The company was founded in 2014 and is based in Hangzhou, the People's Republic of China.