Financial Review: Solar Energy Initiatives (OTCMKTS:SNRY) vs. Ambarella (NASDAQ:AMBA)

Ambarella (NASDAQ:AMBA) and Solar Energy Initiatives (OTCMKTS:SNRY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ambarella and Solar Energy Initiatives, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	1	3	7	0	2.55
Solar Energy Initiatives	0	0	0	0	N/A

Ambarella presently has a consensus price target of $75.00, suggesting a potential upside of 30.94%. Given Ambarella’s higher probable upside, analysts plainly believe Ambarella is more favorable than Solar Energy Initiatives.

Volatility and Risk

Ambarella has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Solar Energy Initiatives has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Profitability

This table compares Ambarella and Solar Energy Initiatives’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambarella	-79.46%	-26.01%	-22.28%
Solar Energy Initiatives	N/A	N/A	N/A

Valuation and Earnings

This table compares Ambarella and Solar Energy Initiatives”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambarella	$220.41 million	10.65	-$169.42 million	($4.26)	-13.45
Solar Energy Initiatives	N/A	N/A	N/A	N/A	N/A

Solar Energy Initiatives has lower revenue, but higher earnings than Ambarella.

Institutional and Insider Ownership

82.1% of Ambarella shares are owned by institutional investors. Comparatively, 0.1% of Solar Energy Initiatives shares are owned by institutional investors. 5.7% of Ambarella shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Ambarella beats Solar Energy Initiatives on 6 of the 9 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 Solar Energy Initiatives

Solar Energy Initiatives, Inc., together with its subsidiaries, markets and sells solar power products, systems, and services in the United States and the Caribbean. The company primarily designs, markets, and sells solar power systems for residential and commercial customers; and designs, markets, sells, owns, and operates solar power systems for municipal and commercial customers, as well as designs, develops, and manages solar parks. Its products include photovoltaic panels, photovoltaic roofing systems, solar thermal products, balance of system products, and management system products. The company was formerly known as NP Capital Corp. and changed its name to Solar Energy Initiatives, Inc. in September 2008. Solar Energy Initiatives, Inc. was founded in 2006 and is based in Cary, North Carolina.