Critical Analysis: Resonate Blends (OTCMKTS:KOAN) vs. PDF Solutions (NASDAQ:PDFS)

Resonate Blends (OTCMKTS:KOAN) and PDF Solutions (NASDAQ:PDFS) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation and Earnings

This table compares Resonate Blends and PDF Solutions’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resonate Blends	$20,000.00	164.20	-$1.42 million	($0.05)	-0.68
PDF Solutions	$165.84 million	8.71	$3.11 million	$0.05	752.20

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

Risk & Volatility

Resonate Blends has a beta of 3.02, suggesting that its stock price is 202% more volatile than the S&P 500. Comparatively, PDF Solutions has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

7.4% of Resonate Blends shares are held by institutional investors. Comparatively, 79.5% of PDF Solutions shares are held by institutional investors. 50.0% of Resonate Blends shares are held by insiders. Comparatively, 11.2% of PDF Solutions 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.

Profitability

This table compares Resonate Blends and PDF Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resonate Blends	N/A	N/A	-80.10%
PDF Solutions	1.42%	4.83%	3.78%

Analyst Ratings

This is a summary of current recommendations and price targets for Resonate Blends and PDF Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resonate Blends	0	0	0	0	N/A
PDF Solutions	0	0	2	0	3.00

PDF Solutions has a consensus price target of $41.00, indicating a potential upside of 9.01%. Given PDF Solutions’ higher possible upside, analysts plainly believe PDF Solutions is more favorable than Resonate Blends.

Summary

PDF Solutions beats Resonate Blends on 10 of the 13 factors compared between the two stocks.

About Resonate Blends

Resonate Blends, Inc., a cannabis holding company, provides cannabis wellness lifestyle products. The company offers Calm to quiet the mind and ease into a gentle sense of wellbeing; Wonder, a THC offering to bring back the youthful sense; Love to reduce barriers to intimacy, stimulate personal connections, and increase tactile sensation; Create to stimulate senses, spark imagination, and channel inner muse; Play to become fully immersed in the moment and the people around; Delight to open up senses; and Sleep for helping to fall asleep. The company was formerly known as Textmunication Holdings, Inc. and changed its name to Resonate Blends, Inc. in December 2019. Resonate Blends, Inc. is based in Calabasas, California.

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.