Ambarella (NASDAQ:AMBA) & BE Semiconductor Industries (OTCMKTS:BESIY) Head to Head Analysis

BE Semiconductor Industries (OTCMKTS:BESIY) and Ambarella (NASDAQ:AMBA) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

82.1% of Ambarella shares are held by institutional investors. 1.6% of BE Semiconductor Industries shares are held by insiders. Comparatively, 4.5% 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.

Valuation & Earnings

This table compares BE Semiconductor Industries and Ambarella”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BE Semiconductor Industries	$668.88 million	16.56	$148.94 million	$4.20	36.37
Ambarella	$390.70 million	6.23	-$75.86 million	($1.29)	-42.77

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

Profitability

This table compares BE Semiconductor Industries and Ambarella’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BE Semiconductor Industries	32.83%	60.45%	25.18%
Ambarella	-13.48%	-10.03%	-7.73%

Volatility and Risk

BE Semiconductor Industries has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Ambarella has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for BE Semiconductor Industries and Ambarella, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BE Semiconductor Industries	1	3	4	1	2.56
Ambarella	1	6	5	0	2.33

Ambarella has a consensus price target of $89.56, indicating a potential upside of 62.33%. Given Ambarella’s higher possible upside, analysts plainly believe Ambarella is more favorable than BE Semiconductor Industries.

Summary

BE Semiconductor Industries beats Ambarella on 9 of the 14 factors compared between the two stocks.

About BE Semiconductor Industries

BE Semiconductor Industries N.V. engages in the development, manufacture, marketing, sale, and service of semiconductor assembly equipment for the semiconductor and electronics industries in China, the United States, Malaysia, Ireland, Korea, Taiwan, Thailand, Other Asia Pacific and Europe, and internationally. It operates through three segments: Die Attach, Packaging, and Plating. The company's principal products include die attach equipment, such as single chip, multi-chip, multi module, flip chip, thermal compression bonding, fan out wafer level packaging, hybrid and embedded bridge die bonding, and die sorting systems; and packaging equipment, including conventional, ultra-thin, and wafer level molding, as well as trim and form, and singulation systems. It also provides plating equipment, such as tin, copper, and precious metal and solar plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company's principal brand names include Datacon, Esec, Fico, and Meco. It offers its products primarily to multinational chip manufacturers, assembly subcontractors, and electronics and industrial companies. BE Semiconductor Industries N.V. was incorporated in 1995 and is headquartered in Duiven, the Netherlands.

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.