Ambarella (AMBA) Competitors

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

Is AMAT or AMBA 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
Applied Materials	24.06%	40.15%	22.42%
Ambarella	-32.73%	-17.50%	-14.43%

Does the media favor AMAT or AMBA?

In the previous week, Applied Materials had 63 more articles in the media than Ambarella. MarketBeat recorded 66 mentions for Applied Materials and 3 mentions for Ambarella. Applied Materials' average media sentiment score of 1.13 beat Ambarella's score of 0.96 indicating that Applied Materials is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Materials	47 Very Positive mention(s)	5 Positive mention(s)	10 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ambarella	1 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend AMAT or AMBA?

Applied Materials presently has a consensus target price of $202.65, suggesting a potential upside of 3.72%. Ambarella has a consensus target price of $84.55, suggesting a potential upside of 24.29%. Given Ambarella's higher possible upside, analysts clearly believe Ambarella is more favorable than Applied Materials.

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

Which has more risk and volatility, AMAT or AMBA?

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

Which has stronger valuation and earnings, AMAT or AMBA?

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
Applied Materials	$27.18B	5.77	$7.18B	$8.22	23.77
Ambarella	$284.86M	10.13	-$117.13M	-$2.49	-27.32

Do institutionals & insiders have more ownership in AMAT or AMBA?

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

Summary

Applied Materials beats Ambarella on 11 of the 16 factors compared between the two stocks.