Astera Labs (NASDAQ:ALAB) and Rubrik (NYSE:RBRK) Critical Comparison

Astera Labs (NASDAQ:ALAB) and Rubrik (NYSE:RBRK) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Astera Labs and Rubrik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astera Labs	26.72%	18.49%	16.60%
Rubrik	-20.25%	N/A	-10.27%

Earnings & Valuation

This table compares Astera Labs and Rubrik”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$852.53 million	73.82	$219.13 million	$1.48	248.07
Rubrik	$1.32 billion	10.49	-$348.83 million	($1.45)	-47.06

Astera Labs has higher earnings, but lower revenue than Rubrik. Rubrik is trading at a lower price-to-earnings ratio than Astera Labs, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

60.5% of Astera Labs shares are owned by institutional investors. Comparatively, 49.5% of Rubrik shares are owned by institutional investors. 10.4% of Astera Labs shares are owned by company insiders. Comparatively, 13.7% of Rubrik shares are owned by company 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.

Volatility and Risk

Astera Labs has a beta of 3.95, indicating that its stock price is 295% more volatile than the S&P 500. Comparatively, Rubrik has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Astera Labs and Rubrik, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	11	12	0	2.52
Rubrik	1	0	28	0	2.93

Astera Labs presently has a consensus price target of $233.75, indicating a potential downside of 36.33%. Rubrik has a consensus price target of $93.00, indicating a potential upside of 36.29%. Given Rubrik’s stronger consensus rating and higher possible upside, analysts clearly believe Rubrik is more favorable than Astera Labs.

Summary

Astera Labs beats Rubrik on 9 of the 14 factors compared between the two stocks.

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.

About Rubrik

Rubrik, Inc. provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors. Rubrik, Inc. was formerly known as Scaledata, Inc. and changed its name to Rubrik, Inc. in October 2014. The company was incorporated in 2013 and is based in Palo Alto, California.