Ambarella (AMBA) Competitors

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

Which has better valuation and earnings, AMBA or AMAT?

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
Ambarella	$284.86M	9.91	-$117.13M	-$2.49	-26.74
Applied Materials	$28.09B	5.69	$7.18B	$8.22	24.24

Which has more volatility & risk, AMBA or AMAT?

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

Do analysts recommend AMBA or AMAT?

Ambarella currently has a consensus price target of $84.55, suggesting a potential upside of 26.98%. Applied Materials has a consensus price target of $204.74, suggesting a potential upside of 2.73%. Given Ambarella's higher probable upside, equities analysts plainly believe Ambarella is more favorable than Applied Materials.

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

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

Does the media favor AMBA or AMAT?

In the previous week, Applied Materials had 53 more articles in the media than Ambarella. MarketBeat recorded 57 mentions for Applied Materials and 4 mentions for Ambarella. Ambarella's average media sentiment score of 1.29 beat Applied Materials' score of 1.16 indicating that Ambarella is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ambarella	2 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	40 Very Positive mention(s)	3 Positive mention(s)	11 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals hold more shares of AMBA or AMAT?

82.1% of Ambarella shares are held by institutional investors. Comparatively, 80.6% of Applied Materials shares are held by institutional investors. 5.7% of Ambarella shares are held by insiders. Comparatively, 0.2% of Applied Materials shares are held by 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.

Summary

Applied Materials beats Ambarella on 10 of the 16 factors compared between the two stocks.