Head to Head Contrast: Ambarella (AMBA) versus Its Peers

Ambarella (NASDAQ:AMBA) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare Ambarella to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, profitability, earnings, dividends and risk.

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%

Institutional and Insider 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 company insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Ambarella and its rivals top-line 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.

Analyst Recommendations

This is a summary of current recommendations 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 currently has a consensus price target of $89.56, suggesting 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 probable upside, analysts plainly believe Ambarella has less favorable growth aspects than its rivals.

Risk & Volatility

Ambarella has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Ambarella’s rivals have a beta of 2.80, suggesting that their average share price is 180% more volatile than the S&P 500.

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.