Ceva, Inc. and Alpha and Omega Semiconductor are two small-cap companies listed on NASDAQ, both operating within the technology sector. A recent financial comparison highlights key differences between these firms in terms of risk, valuation, earnings, dividends, institutional ownership, profitability, and analyst recommendations.
Institutional and Insider Ownership
Institutional investment plays a significant role in the evaluation of these companies. Currently, 79.0% of Alpha and Omega Semiconductor shares are owned by institutional investors, while Ceva boasts a higher institutional ownership of 85.4%. On the insider front, Alpha and Omega Semiconductor has 16.7% of shares held by insiders, compared to a mere 2.4% for Ceva. This robust institutional backing suggests that large investment entities have confidence in Ceva’s long-term potential.
Earnings and Valuation Metrics
When it comes to earnings, Ceva has reported lower revenue figures compared to Alpha and Omega Semiconductor but has managed to achieve higher earnings per share. Notably, Ceva’s price-to-earnings (P/E) ratio is lower, indicating that it may be the more affordable option among the two. This pricing may intrigue investors looking for value in the current market climate.
Volatility remains a central concern for potential investors. Alpha and Omega Semiconductor carries a beta of 1.93, revealing that its shares are 93% more volatile than the S&P 500 index. In contrast, Ceva has a beta of 1.46, indicating a 46% increased volatility compared to the same benchmark. Such figures underscore the risk associated with investing in each company.
Analyst Recommendations and Profitability
MarketBeat has provided insights into analyst ratings and price targets for both companies. Alpha and Omega Semiconductor has a consensus target price of $24.33, suggesting a potential upside of 20.82%. On the other hand, Ceva’s consensus target price stands at $34.00, which implies a more attractive potential upside of 56.90%. Analysts appear to favour Ceva based on these projections and ratings.
Profitability metrics further distinguish the two firms. A comprehensive analysis shows that Ceva excels in several key financial areas, outperforming Alpha and Omega Semiconductor in 8 out of 14 factors assessed.
Both companies have unique market strategies and product offerings. Alpha and Omega Semiconductor, founded in 2000 and headquartered in Sunnyvale, California, specializes in power semiconductor products for various applications, including computing, consumer electronics, and industrial sectors. Its portfolio includes a range of products such as metal-oxide-semiconductor field-effect transistors (MOSFETs) and power integrated circuits.
In contrast, Ceva, established in 1999 and based in Rockville, Maryland, focuses on providing silicon and software intellectual property solutions for semiconductor and original equipment manufacturer (OEM) companies globally. Their offerings encompass 5G mobile products, wireless Internet of Things (IoT) solutions, and a variety of audio and sensor software technologies.
As both companies navigate the competitive landscape of technology and semiconductors, the financial comparison highlights the distinct advantages and risks associated with each. Investors may find that Ceva’s higher institutional ownership, better earnings metrics, and analyst ratings make it a more favorable option compared to Alpha and Omega Semiconductor.
Ultimately, the decision on which stock to pursue will depend on individual risk tolerance and investment objectives, as the technology sector continues to evolve and expand.
