Astera Labs (NASDAQ:ALAB) & GlobalFoundries (NASDAQ:GFS) Head-To-Head Contrast

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for GlobalFoundries and Astera Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GlobalFoundries	0	9	6	0	2.40
Astera Labs	0	1	11	0	2.92

GlobalFoundries currently has a consensus target price of $50.21, suggesting a potential upside of 18.21%. Astera Labs has a consensus target price of $101.58, suggesting a potential downside of 24.55%. Given GlobalFoundries’ higher possible upside, analysts clearly believe GlobalFoundries is more favorable than Astera Labs.

Earnings and Valuation

This table compares GlobalFoundries and Astera Labs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GlobalFoundries	$6.77 billion	3.46	$1.02 billion	$1.34	31.70
Astera Labs	$305.71 million	69.85	-$26.26 million	N/A	N/A

GlobalFoundries has higher revenue and earnings than Astera Labs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GlobalFoundries	10.95%	6.87%	4.29%
Astera Labs	-30.69%	-15.57%	-12.87%

Institutional & Insider Ownership

60.5% of Astera Labs shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

GlobalFoundries beats Astera Labs on 6 of the 10 factors compared between the two stocks.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.

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.