Ambarella (NASDAQ:AMBA – Get Free Report) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its rivals? We will compare Ambarella to related companies based on the strength of its dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Volatility and Risk
Ambarella has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, Ambarella’s rivals have a beta of 2.80, meaning that their average stock price is 180% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ambarella and its rivals revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Ambarella | $390.70 million | -$75.86 million | -45.39 |
| Ambarella Competitors | $39.16 billion | $2.46 billion | 8.70 |
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.
Profitability
This table compares Ambarella and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ambarella | -13.48% | -10.03% | -7.73% |
| Ambarella Competitors | -1,278.97% | -126.37% | -3.98% |
Insider & Institutional Ownership
82.1% of Ambarella shares are held by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 4.5% of Ambarella shares are held by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Ambarella and its rivals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ambarella | 1 | 6 | 5 | 0 | 2.33 |
| Ambarella Competitors | 3505 | 12358 | 25781 | 999 | 2.57 |
Ambarella presently has a consensus target price of $89.56, indicating a potential upside of 52.96%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 54.28%. Given Ambarella’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Ambarella has less favorable growth aspects than its rivals.
Summary
Ambarella rivals beat Ambarella on 10 of the 13 factors compared.
About Ambarella
Ambarella, Inc. develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; enterprise and public class, and home security camera; and robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the enterprise, home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
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