Ambarella (NASDAQ:AMBA) and Micron Technology (NASDAQ:MU) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.
Institutional and Insider Ownership
72.3% of Ambarella shares are owned by institutional investors. Comparatively, 80.4% of Micron Technology shares are owned by institutional investors. 5.7% of Ambarella shares are owned by company insiders. Comparatively, 0.2% of Micron Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Ambarella has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares Ambarella and Micron Technology's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ambarella | $228.73 million | 18.63 | $-44,790,000.00 | ($1.33) | -91.11 |
Micron Technology | $21.44 billion | 4.93 | $2.69 billion | $2.55 | 37.04 |
Micron Technology has higher revenue and earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than Micron Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ambarella and Micron Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ambarella | -27.64% | -12.74% | -10.86% |
Micron Technology | 13.59% | 8.46% | 6.22% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Ambarella and Micron Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ambarella | 1 | 4 | 10 | 0 | 2.60 |
Micron Technology | 1 | 6 | 27 | 1 | 2.80 |
Ambarella presently has a consensus target price of $87.6923, suggesting a potential downside of 27.63%. Micron Technology has a consensus target price of $91.1818, suggesting a potential downside of 3.49%. Given Micron Technology's stronger consensus rating and higher probable upside, analysts clearly believe Micron Technology is more favorable than Ambarella.
Summary
Micron Technology beats Ambarella on 12 of the 15 factors compared between the two stocks.