Contrasting Ambarella (NASDAQ:AMBA) & IQE (OTCMKTS:IQEPF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ambarella	-21.31%	-13.02%	-10.52%
IQE	N/A	N/A	N/A

Earnings and Valuation

This table compares Ambarella and IQE”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambarella	$284.86 million	11.36	-$117.13 million	($1.88)	-39.98
IQE	$150.84 million	0.40	-$48.79 million	N/A	N/A

IQE has lower revenue, but higher earnings than Ambarella.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ambarella and IQE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	1	4	7	2	2.71
IQE	0	0	0	0	0.00

Ambarella currently has a consensus price target of $96.00, suggesting a potential upside of 27.73%. Given Ambarella’s stronger consensus rating and higher probable upside, research analysts clearly believe Ambarella is more favorable than IQE.

Institutional & Insider Ownership

82.1% of Ambarella shares are held by institutional investors. 5.7% of Ambarella shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Ambarella has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, IQE has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Summary

Ambarella beats IQE on 9 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 IQE

IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.