Comparing Silvaco Group (NASDAQ:SVCO) & Ambarella (NASDAQ:AMBA)

Ambarella (NASDAQ:AMBAGet Free Report) and Silvaco Group (NASDAQ:SVCOGet Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

82.1% of Ambarella shares are held by institutional investors. 5.3% of Ambarella shares are held by company insiders. Comparatively, 38.4% of Silvaco Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Ambarella and Silvaco Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ambarella 1 4 7 2 2.71
Silvaco Group 1 0 4 1 2.83

Ambarella currently has a consensus price target of $96.00, suggesting a potential upside of 29.55%. Silvaco Group has a consensus price target of $11.25, suggesting a potential upside of 179.85%. Given Silvaco Group’s stronger consensus rating and higher possible upside, analysts plainly believe Silvaco Group is more favorable than Ambarella.

Earnings and Valuation

This table compares Ambarella and Silvaco Group”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ambarella $284.86 million 11.10 -$117.13 million ($1.88) -39.41
Silvaco Group $59.68 million 2.06 -$39.40 million ($1.03) -3.90

Silvaco Group has lower revenue, but higher earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than Silvaco Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ambarella and Silvaco Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ambarella -21.31% -13.14% -10.72%
Silvaco Group -47.59% -15.53% -9.87%

Risk and Volatility

Ambarella has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 3.3, meaning that its share price is 230% more volatile than the S&P 500.

Summary

Silvaco Group beats Ambarella on 8 of the 15 factors compared between the two stocks.

About Ambarella

(Get Free Report)

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.

About Silvaco Group

(Get Free Report)

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.

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