Analyzing Ambarella (NASDAQ:AMBA) and Its Competitors
Ambarella (NASDAQ: AMBA) is one of 105 publicly-traded companies in the “Semiconductors” industry, but how does it compare to its rivals? We will compare Ambarella to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.
Risk and Volatility
Ambarella has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Ambarella’s rivals have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.
This table compares Ambarella and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Ambarella and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ambarella||$323.76 million||$59.32 million||35.52|
|Ambarella Competitors||$4.56 billion||$1.34 billion||82.16|
Ambarella’s rivals have higher revenue and earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a summary of recent ratings for Ambarella and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ambarella presently has a consensus target price of $58.50, suggesting a potential upside of 6.95%. As a group, “Semiconductors” companies have a potential upside of 9.25%. Given Ambarella’s rivals higher probable upside, analysts plainly believe Ambarella has less favorable growth aspects than its rivals.
Insider & Institutional Ownership
57.1% of Ambarella shares are held by institutional investors. Comparatively, 66.5% of shares of all “Semiconductors” companies are held by institutional investors. 5.8% of Ambarella shares are held by company insiders. Comparatively, 6.6% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Ambarella rivals beat Ambarella on 8 of the 13 factors compared.
Ambarella, Inc. offers semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company operates through the development and sale of low-power, high-definition video products segment. Its system-on-a-chip designs incorporate HD video processing, image processing, audio processing and system functions onto a single chip. In the camera market, its platform enables the creation of video content in wearable cameras, automotive aftermarket cameras, professional and consumer Internet Protocol (IP), security cameras, telepresence cameras and unmanned aerial vehicles. In the infrastructure market, its solutions manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications. AmbaClear is its image signal processing architecture. AmbaCast is its HD video processing architecture. It offers the MotorVu 3D 360 degrees Surround View reference design for automotive original equipment manufacturer market.
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