Ambarella (NASDAQ:AMBA) versus Ichor (NASDAQ:ICHR) Head-To-Head Comparison

Ambarella (NASDAQ:AMBA) and Ichor (NASDAQ:ICHR) 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, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ambarella	-62.38%	-23.52%	-19.93%
Ichor	-3.51%	-2.14%	-1.49%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambarella	$226.47 million	13.94	-$169.42 million	($3.86)	-19.62
Ichor	$811.12 million	1.35	-$42.99 million	($0.93)	-34.84

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

Volatility and Risk

Ambarella has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Ichor has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Insider and Institutional Ownership

82.1% of Ambarella shares are held by institutional investors. Comparatively, 94.8% of Ichor shares are held by institutional investors. 5.7% of Ambarella shares are held by company insiders. Comparatively, 2.2% of Ichor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ambarella and Ichor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	0	4	8	0	2.67
Ichor	0	2	4	1	2.86

Ambarella currently has a consensus price target of $85.42, suggesting a potential upside of 12.81%. Ichor has a consensus price target of $42.29, suggesting a potential upside of 30.51%. Given Ichor’s stronger consensus rating and higher probable upside, analysts plainly believe Ichor is more favorable than Ambarella.

Summary

Ichor beats Ambarella on 11 of the 15 factors compared between the two stocks.

About Ambarella

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 Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.