Financial Contrast: Celestica (CLS) versus Ambarella (AMBA)
Celestica (NYSE: CLS) and Ambarella (NASDAQ:AMBA) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Valuation & Earnings
This table compares Celestica and Ambarella’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Celestica||$6.21 billion||0.27||$256.20 million||$0.92||12.55|
|Ambarella||$317.28 million||5.36||$63.16 million||$1.69||30.00|
Celestica has higher revenue and earnings than Ambarella. Celestica is trading at a lower price-to-earnings ratio than Ambarella, indicating that it is currently the more affordable of the two stocks.
This table compares Celestica and Ambarella’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Celestica and Ambarella, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Celestica currently has a consensus price target of $14.02, indicating a potential upside of 21.34%. Ambarella has a consensus price target of $67.40, indicating a potential upside of 32.94%. Given Ambarella’s stronger consensus rating and higher possible upside, analysts clearly believe Ambarella is more favorable than Celestica.
Risk & Volatility
Celestica has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Ambarella has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.
Insider & Institutional Ownership
70.3% of Celestica shares are owned by institutional investors. Comparatively, 57.7% of Ambarella shares are owned by institutional investors. 1.0% of Celestica shares are owned by insiders. Comparatively, 5.8% of Ambarella shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Ambarella beats Celestica on 11 of the 14 factors compared between the two stocks.
Celestica Company Profile
Celestica Inc. is a provider of supply chain solutions. The Company operates in electronics manufacturing services business segment. The Company offers a range of services to its customers, including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services. Its products and services serve a range of applications, including servers; storage systems; optical equipment; aerospace and defense electronics; healthcare products and applications; semiconductor equipment, and a range of industrial and alternative energy products, including solar panels and inverters. It designs, manufactures and tests solar panels for the residential, commercial and utility scale markets. It uses technologies in the assembly and testing of its products.
Ambarella Company Profile
Ambarella, Inc. offers semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company operates through the development and sale of low-power, high-definition video products segment. Its system-on-a-chip designs incorporate HD video processing, image processing, audio processing and system functions onto a single chip. In the camera market, its platform enables the creation of video content in wearable cameras, automotive aftermarket cameras, professional and consumer Internet Protocol (IP), security cameras, telepresence cameras and unmanned aerial vehicles. In the infrastructure market, its solutions manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications. AmbaClear is its image signal processing architecture. AmbaCast is its HD video processing architecture. It offers the MotorVu 3D 360 degrees Surround View reference design for automotive original equipment manufacturer market.
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