Ambarella (NASDAQ:AMBA) vs. ChipMOS TECHNOLOGIES (NASDAQ:IMOS) Critical Review

Ambarella (NASDAQ:AMBAGet Rating) and ChipMOS TECHNOLOGIES (NASDAQ:IMOSGet Rating) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Valuation & Earnings

This table compares Ambarella and ChipMOS TECHNOLOGIES’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ambarella $331.86 million 10.31 -$26.41 million ($0.73) -123.15
ChipMOS TECHNOLOGIES $987.70 million 1.21 $182.40 million $4.97 6.60

ChipMOS TECHNOLOGIES has higher revenue and earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than ChipMOS TECHNOLOGIES, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Ambarella and ChipMOS TECHNOLOGIES, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ambarella 1 2 13 0 2.75
ChipMOS TECHNOLOGIES 0 0 0 0 N/A

Ambarella presently has a consensus target price of $178.14, indicating a potential upside of 98.16%. Given Ambarella’s higher probable upside, analysts clearly believe Ambarella is more favorable than ChipMOS TECHNOLOGIES.

Insider & Institutional Ownership

76.4% of Ambarella shares are owned by institutional investors. Comparatively, 7.5% of ChipMOS TECHNOLOGIES shares are owned by institutional investors. 5.6% of Ambarella shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Ambarella has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, ChipMOS TECHNOLOGIES has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Ambarella and ChipMOS TECHNOLOGIES’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ambarella -7.96% -4.95% -4.13%
ChipMOS TECHNOLOGIES 18.49% 22.43% 13.24%

Summary

ChipMOS TECHNOLOGIES beats Ambarella on 7 of the 13 factors compared between the two stocks.

Ambarella Company Profile (Get Rating)

Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network 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 enable the creation of video content for wearable cameras; automotive cameras; drones; virtual reality cameras; and internet protocol security cameras for professional use, and home security and monitoring, as well as robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras. 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.

ChipMOS TECHNOLOGIES Company Profile (Get Rating)

ChipMOS TECHNOLOGIES INC. researches, develops, manufactures, and sells high-integration and high-precision integrated circuits, and related assembly and testing services in Taiwan, Japan, Singapore, and internationally. The company operates through Testing; Assembly; Testing and Assembly for LCD, OLED and other Display Panel Driver Semiconductors; Bumping; and Other segments. It provides a range of back-end assembly and test services, including engineering test, wafer probing and final test of memory and logic/mixed-signal semiconductors, as well as leadframe-and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors; and gold bumping, reel to reel assembly, and test services for LCD and other flat-panel display driver semiconductors. The company's semiconductors are used in personal computers; graphics applications, such as game consoles; communications equipment; mobile products comprising cellular handsets, tablets, and consumer electronic products; and automotive/industry and display applications, such as display panels. ChipMOS TECHNOLOGIES INC. was incorporated in 1997 and is headquartered in Hsinchu, Taiwan.

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