Financial Comparison: Ambarella (NASDAQ:AMBA) & ams-OSRAM (OTCMKTS:AMSSY)

Ambarella (NASDAQ:AMBA) and ams-OSRAM (OTCMKTS:AMSSY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Analyst Ratings

This is a summary of current recommendations for Ambarella and ams-OSRAM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	0	3	8	1	2.83
ams-OSRAM	0	0	0	1	4.00

Ambarella presently has a consensus price target of $93.88, indicating a potential upside of 16.80%. Given Ambarella’s higher possible upside, research analysts plainly believe Ambarella is more favorable than ams-OSRAM.

Volatility and Risk

Ambarella has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, ams-OSRAM 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 ams-OSRAM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambarella	-25.46%	-14.73%	-12.06%
ams-OSRAM	-3.27%	3.12%	0.56%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambarella	$284.86 million	12.04	-$117.13 million	($2.11)	-38.09
ams-OSRAM	$3.71 billion	0.33	-$850.53 million	($0.71)	-8.52

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

Institutional and Insider Ownership

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

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 ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.