ams-OSRAM (OTCMKTS:AMSSY) versus GCT Semiconductor (NYSE:GCTS) Critical Comparison

GCT Semiconductor (NYSE:GCTS) and ams-OSRAM (OTCMKTS:AMSSY) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares GCT Semiconductor and ams-OSRAM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCT Semiconductor	-1,010.20%	N/A	-198.45%
ams-OSRAM	-4.86%	2.61%	0.44%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for GCT Semiconductor and ams-OSRAM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCT Semiconductor	2	0	2	0	2.00
ams-OSRAM	2	1	0	0	1.33

GCT Semiconductor currently has a consensus price target of $3.50, suggesting a potential upside of 177.78%. Given GCT Semiconductor’s stronger consensus rating and higher possible upside, equities analysts clearly believe GCT Semiconductor is more favorable than ams-OSRAM.

Volatility and Risk

GCT Semiconductor has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares GCT Semiconductor 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
GCT Semiconductor	$9.13 million	7.88	-$12.38 million	($0.77)	-1.64
ams-OSRAM	$3.71 billion	0.28	-$850.53 million	($0.90)	-5.78

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

Insider & Institutional Ownership

28.1% of GCT Semiconductor shares are held by institutional investors. 5.4% of GCT Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

GCT Semiconductor beats ams-OSRAM on 10 of the 14 factors compared between the two stocks.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, 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.