Ambarella (AMBA) vs. Its Rivals Financial Review

Ambarella (NASDAQ: AMBA) is one of 104 public companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare Ambarella to similar companies based on the strength of its analyst recommendations, risk, valuation, earnings, institutional ownership, profitability and dividends.

Valuation & Earnings

This table compares Ambarella and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ambarella $323.76 million $59.32 million 36.65
Ambarella Competitors $4.28 billion $1.35 billion 24.00

Ambarella’s peers have higher revenue and earnings than Ambarella. Ambarella is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Ambarella and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ambarella 16.45% 11.94% 10.55%
Ambarella Competitors -46.54% 1.08% 0.76%

Insider & Institutional Ownership

56.8% of Ambarella shares are held by institutional investors. Comparatively, 65.2% of shares of all “Semiconductors” companies are held by institutional investors. 5.8% of Ambarella shares are held by company insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ambarella and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ambarella 0 5 7 0 2.58
Ambarella Competitors 920 4780 8682 363 2.58

Ambarella currently has a consensus target price of $58.50, indicating a potential upside of 3.65%. As a group, “Semiconductors” companies have a potential upside of 7.80%. Given Ambarella’s peers higher possible upside, analysts plainly believe Ambarella has less favorable growth aspects than its peers.

Risk and Volatility

Ambarella has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Ambarella’s peers have a beta of 1.05, suggesting that their average share price is 5% more volatile than the S&P 500.

Summary

Ambarella peers beat Ambarella on 7 of the 13 factors compared.

Ambarella Company Profile

Ambarella, Inc. offers semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company operates through the development and sale of low-power, high-definition video products segment. Its system-on-a-chip designs incorporate HD video processing, image processing, audio processing and system functions onto a single chip. In the camera market, its platform enables the creation of video content in wearable cameras, automotive aftermarket cameras, professional and consumer Internet Protocol (IP), security cameras, telepresence cameras and unmanned aerial vehicles. In the infrastructure market, its solutions manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications. AmbaClear is its image signal processing architecture. AmbaCast is its HD video processing architecture. It offers the MotorVu 3D 360 degrees Surround View reference design for automotive original equipment manufacturer market.

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