Ambarella (NASDAQ:AMBA – Get Free Report) and Coda Octopus Group (NASDAQ:CODA – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
82.1% of Ambarella shares are held by institutional investors. Comparatively, 20.1% of Coda Octopus Group shares are held by institutional investors. 4.5% of Ambarella shares are held by insiders. Comparatively, 21.8% of Coda Octopus Group shares are held by 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
Ambarella has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ambarella | 1 | 5 | 7 | 1 | 2.57 |
| Coda Octopus Group | 0 | 1 | 1 | 0 | 2.50 |
Ambarella presently has a consensus price target of $99.75, suggesting a potential upside of 31.82%. Given Ambarella’s stronger consensus rating and higher possible upside, analysts clearly believe Ambarella is more favorable than Coda Octopus Group.
Profitability
This table compares Ambarella and Coda Octopus Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ambarella | -17.18% | -11.02% | -8.60% |
| Coda Octopus Group | 14.78% | 7.17% | 6.57% |
Earnings and Valuation
This table compares Ambarella and Coda Octopus Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ambarella | $390.70 million | 8.49 | -$75.86 million | ($1.61) | -47.00 |
| Coda Octopus Group | $28.06 million | 5.30 | $4.13 million | $0.36 | 36.61 |
Coda Octopus Group has lower revenue, but higher earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than Coda Octopus Group, indicating that it is currently the more affordable of the two stocks.
Summary
Ambarella beats Coda Octopus Group on 8 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 Coda Octopus Group
Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.
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