Dialog Semiconductor (OTCMKTS:DLGNF) versus Alpha and Omega Semiconductor (NASDAQ:AOSL) Head-To-Head Contrast

Alpha and Omega Semiconductor (NASDAQ:AOSL) and Dialog Semiconductor (OTCMKTS:DLGNF) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Earnings and Valuation

This table compares Alpha and Omega Semiconductor and Dialog Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha and Omega Semiconductor	$666.40 million	1.10	-$11.08 million	($0.80)	-31.14
Dialog Semiconductor	$1.38 billion	4.17	$84.50 million	$3.32	24.22

Dialog Semiconductor has higher revenue and earnings than Alpha and Omega Semiconductor. Alpha and Omega Semiconductor is trading at a lower price-to-earnings ratio than Dialog Semiconductor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Alpha and Omega Semiconductor and Dialog Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha and Omega Semiconductor	-3.46%	-0.23%	-0.18%
Dialog Semiconductor	5.72%	16.55%	13.08%

Institutional and Insider Ownership

79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. 16.9% of Alpha and Omega Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Alpha and Omega Semiconductor has a beta of 2.56, indicating that its share price is 156% more volatile than the S&P 500. Comparatively, Dialog Semiconductor has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Alpha and Omega Semiconductor and Dialog Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha and Omega Semiconductor	1	0	2	0	2.33
Dialog Semiconductor	0	0	0	0	0.00

Alpha and Omega Semiconductor currently has a consensus target price of $38.67, indicating a potential upside of 55.23%. Given Alpha and Omega Semiconductor’s stronger consensus rating and higher possible upside, research analysts plainly believe Alpha and Omega Semiconductor is more favorable than Dialog Semiconductor.

Summary

Dialog Semiconductor beats Alpha and Omega Semiconductor on 8 of the 14 factors compared between the two stocks.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

About Dialog Semiconductor

Dialog Semiconductor Plc engages in the design, development, and marketing of integrated circuit (IC) products. It operates through the following segments: Custom Mixed Signal (CMS), Advanced Mixed Signal (AMS), Connectivity and Audio (C&A), and Industrial IoT. The CMS segment provides custom ICs designed to meet the needs of the customers in the mobile, industrial, automotive, computing and storage markets. The AMS segment offers standard products including CMICs, AC/DC converter solutions for smaller, fast charging power adaptors for portable devices as well as LED drivers for backlighting and solid state lighting products. The C&A segment includes standard products incorporating short-range wireless, digital cordless, Bluetooth low energy, VoIP, and low-power Wi-Fi technologies. The Industrial IoT segment consists of products enabling smart factory and building automation including non-volatile memory (NVM) ICs, industrial communication ICs, custom-designed ASICs and embedded systems, servers, and software. The company was founded in 1990 and is headquartered in Reading, the United Kingdom.