Ambarella (AMBA) Competitors

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

Which has more volatility and risk, AMBA or AMAT?

Ambarella has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Which has higher valuation & 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	10.24	-$117.13M	-$2.49	-27.62
Applied Materials	$27.18B	4.84	$7.18B	$8.39	19.54

Do insiders and institutionals have more ownership in 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 company insiders. Comparatively, 0.2% of Applied Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Does the media favor AMBA or AMAT?

In the previous week, Applied Materials had 169 more articles in the media than Ambarella. MarketBeat recorded 175 mentions for Applied Materials and 6 mentions for Ambarella. Ambarella's average media sentiment score of 1.65 beat Applied Materials' score of 0.46 indicating that Ambarella is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ambarella	4 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Applied Materials	61 Very Positive mention(s)	22 Positive mention(s)	30 Neutral mention(s)	33 Negative mention(s)	5 Very Negative mention(s)	Neutral

Do analysts recommend AMBA or AMAT?

Ambarella presently has a consensus target price of $83.64, suggesting a potential upside of 21.60%. Applied Materials has a consensus target price of $194.84, suggesting a potential upside of 18.83%. Given Ambarella's stronger consensus rating and higher possible upside, research analysts clearly 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	1 Sell rating(s)	10 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.57

Is AMBA or AMAT more profitable?

Applied Materials has a net margin of 23.88% compared to Ambarella's net margin of -32.73%. Applied Materials' return on equity of 41.31% beat Ambarella's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ambarella	-32.73%	-17.50%	-14.43%
Applied Materials	23.88%	41.31%	23.06%

Summary

Applied Materials beats Ambarella on 9 of the 16 factors compared between the two stocks.