Ambarella (NASDAQ:AMBA – Get Free Report) and Semiconductor Manufacturing International (OTCMKTS:SMICY – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
Analyst Ratings
This is a summary of recent ratings and price targets for Ambarella and Semiconductor Manufacturing International, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Ambarella | 1 | 4 | 7 | 0 | 2.50 |
Semiconductor Manufacturing International | 0 | 0 | 0 | 0 | N/A |
Ambarella presently has a consensus price target of $69.75, indicating a potential upside of 26.43%. Given Ambarella’s higher probable upside, equities analysts clearly believe Ambarella is more favorable than Semiconductor Manufacturing International.
Volatility and Risk
Earnings and Valuation
This table compares Ambarella and Semiconductor Manufacturing International’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Ambarella | $226.47 million | 9.99 | -$169.42 million | ($4.26) | -12.95 |
Semiconductor Manufacturing International | $3.12 billion | 5.18 | $234.68 million | $0.21 | 66.67 |
Semiconductor Manufacturing International has higher revenue and earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ambarella and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Ambarella | -78.36% | -24.86% | -21.45% |
Semiconductor Manufacturing International | 14.53% | 4.00% | 2.62% |
Institutional & Insider Ownership
82.1% of Ambarella shares are owned by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are owned by institutional investors. 5.7% of Ambarella shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Semiconductor Manufacturing International beats Ambarella on 7 of the 13 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 Semiconductor Manufacturing International
Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.
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