Ambarella (NASDAQ:AMBA) & SCI Engineered Materials (OTCMKTS:SCIA) Financial Comparison

Ambarella (NASDAQ:AMBA) and SCI Engineered Materials (OTCMKTS:SCIA) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Ambarella and SCI Engineered Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	1	4	7	2	2.71
SCI Engineered Materials	0	0	0	0	0.00

Ambarella currently has a consensus target price of $96.00, suggesting a potential upside of 56.66%. Given Ambarella’s stronger consensus rating and higher possible upside, analysts plainly believe Ambarella is more favorable than SCI Engineered Materials.

Insider & Institutional Ownership

82.1% of Ambarella shares are owned by institutional investors. Comparatively, 27.6% of SCI Engineered Materials shares are owned by institutional investors. 5.3% of Ambarella shares are owned by company insiders. Comparatively, 19.3% of SCI Engineered Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Ambarella and SCI Engineered Materials”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambarella	$390.70 million	6.87	-$75.86 million	($1.78)	-34.43
SCI Engineered Materials	$19.61 million	1.13	$1.75 million	$0.38	13.11

SCI Engineered Materials has lower revenue, but higher earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than SCI Engineered Materials, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ambarella has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, SCI Engineered Materials has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Ambarella and SCI Engineered Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambarella	-19.42%	-12.16%	-9.59%
SCI Engineered Materials	8.91%	12.67%	9.93%

Summary

Ambarella beats SCI Engineered Materials on 8 of the 15 factors compared between the two stocks.

About Ambarella

Ambarella, Inc. develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; enterprise and public class, and home security camera; and robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the enterprise, home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

About SCI Engineered Materials

SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. It offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, thin film solar, flat panel displays, defense, aerospace, and photonics industries. The company’s materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. It serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.