United Microelectronics (NYSE:UMC – Get Free Report) and Astera Labs (NASDAQ:ALAB – Get Free Report) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Insider and Institutional Ownership
5.1% of United Microelectronics shares are owned by institutional investors. Comparatively, 60.5% of Astera Labs shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares United Microelectronics and Astera Labs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Microelectronics | $7.09 billion | 2.15 | $1.44 billion | $0.58 | 10.50 |
| Astera Labs | $305.71 million | 53.59 | -$26.26 million | N/A | N/A |
Profitability
This table compares United Microelectronics and Astera Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Microelectronics | 20.35% | 12.78% | 8.16% |
| Astera Labs | -30.69% | -15.57% | -12.87% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for United Microelectronics and Astera Labs, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Microelectronics | 1 | 3 | 0 | 0 | 1.75 |
| Astera Labs | 0 | 1 | 11 | 1 | 3.00 |
United Microelectronics currently has a consensus target price of $7.40, suggesting a potential upside of 21.51%. Astera Labs has a consensus target price of $107.42, suggesting a potential upside of 4.00%. Given United Microelectronics’ higher probable upside, analysts plainly believe United Microelectronics is more favorable than Astera Labs.
Summary
United Microelectronics beats Astera Labs on 7 of the 12 factors compared between the two stocks.
About United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
About Astera Labs
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.
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