Contrasting SemiLEDS (NASDAQ:LEDS) and ams-OSRAM (OTCMKTS:AMSSY)

SemiLEDS (NASDAQ:LEDS) and ams-OSRAM (OTCMKTS:AMSSY) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SemiLEDS and ams-OSRAM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SemiLEDS	1	0	0	0	1.00
ams-OSRAM	1	3	0	0	1.75

Valuation and Earnings

This table compares SemiLEDS and ams-OSRAM”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SemiLEDS	$43.01 million	0.27	-$1.13 million	($0.28)	-5.07
ams-OSRAM	$3.76 billion	0.41	-$147.08 million	($0.71)	-10.83

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

Profitability

This table compares SemiLEDS and ams-OSRAM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SemiLEDS	-6.71%	-89.53%	-13.38%
ams-OSRAM	-3.76%	6.11%	0.96%

Risk and Volatility

SemiLEDS has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Insider & Institutional Ownership

76.3% of SemiLEDS shares are owned by institutional investors. 57.4% of SemiLEDS shares are owned 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.

About SemiLEDS

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.