Ambarella (AMBA) Competitors

Ambarella (NASDAQ:AMBA) and Applied Materials (NASDAQ:AMAT) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, media sentiment, valuation, risk and analyst recommendations.

Which has higher earnings & valuation, AMBA or AMAT?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambarella	$284.86M	10.33	-$117.13M	-$2.49	-27.86
Applied Materials	$27.18B	5.62	$7.18B	$8.22	23.17

Does the media refer more to AMBA or AMAT?

In the previous week, Applied Materials had 43 more articles in the media than Ambarella. MarketBeat recorded 46 mentions for Applied Materials and 3 mentions for Ambarella. Ambarella's average media sentiment score of 1.42 beat Applied Materials' score of 1.19 indicating that Ambarella is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ambarella	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	35 Very Positive mention(s)	2 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AMBA or AMAT more profitable?

Applied Materials has a net margin of 24.06% compared to Ambarella's net margin of -32.73%. Applied Materials' return on equity of 40.15% beat Ambarella's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ambarella	-32.73%	-17.50%	-14.43%
Applied Materials	24.06%	40.15%	22.42%

Do institutionals and insiders believe in AMBA or AMAT?

82.1% of Ambarella shares are owned by institutional investors. Comparatively, 80.6% of Applied Materials shares are owned by institutional investors. 5.3% of Ambarella shares are owned by company insiders. Comparatively, 0.2% of Applied Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Which has more volatility & risk, AMBA or AMAT?

Ambarella has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Do analysts prefer AMBA or AMAT?

Ambarella presently has a consensus target price of $84.55, indicating a potential upside of 21.86%. Applied Materials has a consensus target price of $204.74, indicating a potential upside of 7.51%. Given Ambarella's higher possible upside, equities analysts plainly believe Ambarella is more favorable than Applied Materials.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	0 Sell rating(s)	4 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.67
Applied Materials	0 Sell rating(s)	8 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.68

Summary

Applied Materials beats Ambarella on 10 of the 16 factors compared between the two stocks.