Head-To-Head Analysis: Navitas Semiconductor (NASDAQ:NVTS) vs. Ambarella (NASDAQ:AMBA)

Navitas Semiconductor (NASDAQ:NVTS) and Ambarella (NASDAQ:AMBA) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Volatility & Risk

Navitas Semiconductor has a beta of 3.01, suggesting that its share price is 201% more volatile than the S&P 500. Comparatively, Ambarella has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

Profitability

This table compares Navitas Semiconductor and Ambarella’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-131.83%	-22.62%	-20.38%
Ambarella	-32.73%	-17.50%	-14.43%

Valuation & Earnings

This table compares Navitas Semiconductor and Ambarella”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$74.15 million	20.59	-$84.60 million	($0.52)	-15.31
Ambarella	$284.86 million	9.49	-$117.13 million	($2.49)	-25.60

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

Analyst Recommendations

This is a breakdown of current recommendations for Navitas Semiconductor and Ambarella, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	1	1	4	0	2.50
Ambarella	0	4	8	0	2.67

Navitas Semiconductor currently has a consensus target price of $3.71, indicating a potential downside of 53.41%. Ambarella has a consensus target price of $83.64, indicating a potential upside of 31.21%. Given Ambarella’s stronger consensus rating and higher possible upside, analysts plainly believe Ambarella is more favorable than Navitas Semiconductor.

Insider & Institutional Ownership

46.1% of Navitas Semiconductor shares are held by institutional investors. Comparatively, 82.1% of Ambarella shares are held by institutional investors. 29.9% of Navitas Semiconductor shares are held by company insiders. Comparatively, 5.3% of Ambarella shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Ambarella beats Navitas Semiconductor on 8 of the 14 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.