Comparing Ambarella (AMBA) & Its Rivals

Ambarella (NASDAQ:AMBA) is one of 220 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its rivals? We will compare Ambarella to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, risk, profitability, dividends and valuation.

Profitability

This table compares Ambarella and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambarella	-13.48%	-10.03%	-7.73%
Ambarella Competitors	-1,255.36%	-126.08%	-3.83%

Volatility and Risk

Ambarella has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Ambarella’s rivals have a beta of 2.81, suggesting that their average stock price is 181% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ambarella and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ambarella	$390.70 million	-$75.86 million	-47.33
Ambarella Competitors	$7.39 billion	$2.55 billion	19.97

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

Institutional & Insider Ownership

82.1% of Ambarella shares are held by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 4.5% of Ambarella shares are held by company insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Ambarella and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	1	6	5	0	2.33
Ambarella Competitors	3513	12392	25844	1004	2.57

Ambarella currently has a consensus target price of $89.56, suggesting a potential upside of 46.67%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 37.50%. Given Ambarella’s higher possible upside, equities research analysts clearly believe Ambarella is more favorable than its rivals.

Summary

Ambarella rivals beat Ambarella on 8 of the 12 factors compared.

Ambarella Company Profile

Ambarella, Inc. is a fabless semiconductor company that develops system-on-a-chip (SoC) products for video processing and computer vision. Its chips combine image processing, video encoding and artificial intelligence capabilities for devices that capture and analyze visual information. The company’s products are used in applications including automotive systems such as advanced driver-assistance and driver-monitoring systems, security cameras, robotics and other Internet of Things devices. Ambarella also supplies technology for consumer video products, including cameras and drones.