NeoPhotonics Corporation (NYSE: NPTN) and Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
This table compares NeoPhotonics Corporation and Alpha and Omega Semiconductor Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alpha and Omega Semiconductor Limited||3.92%||5.23%||4.07%|
Institutional & Insider Ownership
83.0% of NeoPhotonics Corporation shares are owned by institutional investors. Comparatively, 69.7% of Alpha and Omega Semiconductor Limited shares are owned by institutional investors. 17.3% of NeoPhotonics Corporation shares are owned by company insiders. Comparatively, 21.7% of Alpha and Omega Semiconductor Limited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
NeoPhotonics Corporation has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor Limited has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for NeoPhotonics Corporation and Alpha and Omega Semiconductor Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alpha and Omega Semiconductor Limited||0||1||3||0||2.75|
NeoPhotonics Corporation currently has a consensus target price of $8.92, indicating a potential upside of 94.69%. Alpha and Omega Semiconductor Limited has a consensus target price of $25.00, indicating a potential upside of 43.60%. Given NeoPhotonics Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe NeoPhotonics Corporation is more favorable than Alpha and Omega Semiconductor Limited.
Valuation & Earnings
This table compares NeoPhotonics Corporation and Alpha and Omega Semiconductor Limited’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|NeoPhotonics Corporation||$411.42 million||0.49||-$200,000.00||($0.62)||-7.39|
|Alpha and Omega Semiconductor Limited||$383.34 million||1.09||$13.82 million||$0.61||28.54|
Alpha and Omega Semiconductor Limited has higher revenue, but lower earnings than NeoPhotonics Corporation. NeoPhotonics Corporation is trading at a lower price-to-earnings ratio than Alpha and Omega Semiconductor Limited, indicating that it is currently the more affordable of the two stocks.
NeoPhotonics Corporation Company Profile
NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.
Alpha and Omega Semiconductor Limited Company Profile
Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of power semiconductors. The Company’s portfolio of power semiconductors includes approximately 1,600 products, as of June 30, 2016. The Company’s product portfolio consists of two categories: power discretes and power integrated circuits (ICs). The Company’s portfolio of products focuses high-volume applications, including personal computers, flat panel televisions, light-emitting diode (LED) lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for television, computers, servers and telecommunications equipment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. The Company conducts its operations primarily in the United States, Hong Kong, China, Taiwan, Korea and Japan. Its products are applicable in desktop and tablet personal computers, flat panel displays and televisions.
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