SiTime (NASDAQ:SITM) versus Astera Labs (NASDAQ:ALAB) Financial Analysis

SiTime (NASDAQ:SITM) and Astera Labs (NASDAQ:ALAB) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SiTime and Astera Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	0	1	5	0	2.83
Astera Labs	0	0	11	0	3.00

SiTime currently has a consensus target price of $140.00, indicating a potential upside of 20.86%. Astera Labs has a consensus target price of $86.09, indicating a potential upside of 46.11%. Given Astera Labs’ stronger consensus rating and higher possible upside, analysts plainly believe Astera Labs is more favorable than SiTime.

Insider and Institutional Ownership

84.3% of SiTime shares are owned by institutional investors. 2.3% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiTime	-66.88%	-11.29%	-9.41%
Astera Labs	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$143.99 million	18.40	-$80.54 million	($4.13)	-28.05
Astera Labs	$115.79 million	79.23	N/A	N/A	N/A

Astera Labs has lower revenue, but higher earnings than SiTime.

Summary

Astera Labs beats SiTime on 7 of the 10 factors compared between the two stocks.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

About Astera Labs

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.