Alpha and Omega Semiconductor (NASDAQ:AOSL) and ARM (NASDAQ:ARM) Head-To-Head Contrast

ARM (NASDAQ:ARM) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Earnings & Valuation

This table compares ARM and Alpha and Omega Semiconductor’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARM	$3.50 billion	36.24	$306.00 million	N/A	N/A
Alpha and Omega Semiconductor	$657.27 million	1.57	-$11.08 million	($0.34)	-105.62

ARM has higher revenue and earnings than Alpha and Omega Semiconductor.

Institutional and Insider Ownership

7.5% of ARM shares are held by institutional investors. Comparatively, 79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. 17.9% of Alpha and Omega Semiconductor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ARM and Alpha and Omega Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	1	10	16	1	2.61
Alpha and Omega Semiconductor	1	0	2	0	2.33

ARM currently has a consensus price target of $121.56, indicating a potential upside of 0.50%. Alpha and Omega Semiconductor has a consensus price target of $42.67, indicating a potential upside of 18.82%. Given Alpha and Omega Semiconductor’s higher probable upside, analysts clearly believe Alpha and Omega Semiconductor is more favorable than ARM.

Profitability

This table compares ARM and Alpha and Omega Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARM	12.12%	18.97%	13.23%
Alpha and Omega Semiconductor	-1.69%	-0.33%	-0.25%

Summary

ARM beats Alpha and Omega Semiconductor on 10 of the 13 factors compared between the two stocks.

About ARM

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers 650V SiC MOSFET, a switching solutions for solar inverters, motor drives, industrial power supplies, and energy storage systems. Further, it provides 750V SiC MOSFET for electric vehicle systems such as the on-board charge; transient voltage suppressors; silicon carbide product for industrial applications, such as solar inverters, UPS, and battery management systems. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.