Financial Analysis: Astera Labs (ALAB) vs. Its Rivals

Astera Labs (NASDAQ:ALAB) is one of 173 publicly-traded companies in the “Semiconductors & related devices” industry, but how does it contrast to its peers? We will compare Astera Labs to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.

Valuation & Earnings

This table compares Astera Labs and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Astera Labs	$396.29 million	-$83.42 million	-53.91
Astera Labs Competitors	$4.18 billion	$596.33 million	16.35

Astera Labs’ peers have higher revenue and earnings than Astera Labs. Astera Labs is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for Astera Labs and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	1	11	1	3.00
Astera Labs Competitors	2504	10045	19674	702	2.56

Astera Labs currently has a consensus price target of $115.33, suggesting a potential upside of 23.66%. As a group, “Semiconductors & related devices” companies have a potential upside of 541.96%. Given Astera Labs’ peers higher possible upside, analysts plainly believe Astera Labs has less favorable growth aspects than its peers.

Profitability

This table compares Astera Labs and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astera Labs	-21.05%	-10.76%	-9.91%
Astera Labs Competitors	-469.87%	-76.48%	-11.14%

Institutional & Insider Ownership

60.5% of Astera Labs shares are owned by institutional investors. Comparatively, 57.3% of shares of all “Semiconductors & related devices” companies are owned by institutional investors. 10.0% of shares of all “Semiconductors & related devices” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Astera Labs beats its peers on 7 of the 11 factors compared.

Astera Labs Company Profile

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.