Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) and IEC Electronics Corp (NYSE:IEC) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Alpha and Omega Semiconductor Limited and IEC Electronics Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alpha and Omega Semiconductor Limited 0 1 3 0 2.75
IEC Electronics Corp 0 1 2 0 2.67

Alpha and Omega Semiconductor Limited currently has a consensus price target of $26.00, indicating a potential upside of 51.78%. IEC Electronics Corp has a consensus price target of $5.10, indicating a potential upside of 4.29%. Given Alpha and Omega Semiconductor Limited’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Alpha and Omega Semiconductor Limited is more favorable than IEC Electronics Corp.

Earnings and Valuation

This table compares Alpha and Omega Semiconductor Limited and IEC Electronics Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alpha and Omega Semiconductor Limited $383.34 million 1.07 $39.73 million $0.56 30.59
IEC Electronics Corp $97.25 million 0.52 $3.44 million N/A N/A

Alpha and Omega Semiconductor Limited has higher revenue and earnings than IEC Electronics Corp.

Profitability

This table compares Alpha and Omega Semiconductor Limited and IEC Electronics Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alpha and Omega Semiconductor Limited 3.61% 4.76% 3.71%
IEC Electronics Corp 3.04% 24.24% 6.33%

Institutional & Insider Ownership

69.9% of Alpha and Omega Semiconductor Limited shares are owned by institutional investors. 21.7% of Alpha and Omega Semiconductor Limited shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Alpha and Omega Semiconductor Limited beats IEC Electronics Corp on 9 of the 11 factors compared between the two stocks.

About Alpha and Omega Semiconductor Limited

Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of power semiconductors. The Company’s portfolio of power semiconductors includes approximately 1,600 products, as of June 30, 2016. The Company’s product portfolio consists of two categories: power discretes and power integrated circuits (ICs). The Company’s portfolio of products focuses high-volume applications, including personal computers, flat panel televisions, light-emitting diode (LED) lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for television, computers, servers and telecommunications equipment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. The Company conducts its operations primarily in the United States, Hong Kong, China, Taiwan, Korea and Japan. Its products are applicable in desktop and tablet personal computers, flat panel displays and televisions.

About IEC Electronics Corp

IEC Electronics Corp. provides electronic manufacturing services (EMS) to a range of technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with an array of manufacturing services encompassing electronics, interconnect solutions and precision metalworking. It offers its customers a range of manufacturing services, combined with scientific technical support to ensure their products perform for the critical applications they are intended for. Its products are distributed to and through original equipment manufacturers (OEMs). Its capabilities include design and test development, analysis and testing laboratory, custom functional test design and component risk mitigation.

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