Silvaco Group (NASDAQ:SVCO – Get Free Report) and Ambarella (NASDAQ:AMBA – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
Silvaco Group has a beta of 3.3, meaning that its share price is 230% more volatile than the S&P 500. Comparatively, Ambarella has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.
Valuation and Earnings
This table compares Silvaco Group and Ambarella”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silvaco Group | $59.68 million | 2.35 | -$39.40 million | ($1.03) | -4.44 |
| Ambarella | $284.86 million | 10.45 | -$117.13 million | ($1.88) | -37.10 |
Silvaco Group has higher earnings, but lower revenue 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.
Insider and Institutional Ownership
82.1% of Ambarella shares are owned by institutional investors. 38.4% of Silvaco Group shares are owned by company insiders. Comparatively, 5.7% of Ambarella shares are owned 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 Recommendations
This is a breakdown of recent ratings and price targets for Silvaco Group and Ambarella, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silvaco Group | 1 | 0 | 4 | 1 | 2.83 |
| Ambarella | 1 | 4 | 7 | 2 | 2.71 |
Silvaco Group currently has a consensus price target of $11.25, suggesting a potential upside of 145.90%. Ambarella has a consensus price target of $96.00, suggesting a potential upside of 37.64%. Given Silvaco Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Silvaco Group is more favorable than Ambarella.
Profitability
This table compares Silvaco Group and Ambarella’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silvaco Group | -47.59% | -15.53% | -9.87% |
| Ambarella | -21.31% | -13.14% | -10.72% |
Summary
Silvaco Group beats Ambarella on 8 of the 15 factors compared between the two stocks.
About Silvaco Group
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.
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.
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