Astera Labs (NASDAQ:ALAB – Get Free Report) and STMicroelectronics (NYSE:STM – Get Free Report) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Volatility & Risk
Astera Labs has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, STMicroelectronics has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Astera Labs and STMicroelectronics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astera Labs | 0 | 1 | 14 | 1 | 3.00 |
| STMicroelectronics | 1 | 9 | 4 | 1 | 2.33 |
Profitability
This table compares Astera Labs and STMicroelectronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Astera Labs | -21.05% | -10.40% | -9.56% |
| STMicroelectronics | 11.74% | 8.92% | 6.22% |
Institutional & Insider Ownership
60.5% of Astera Labs shares are held by institutional investors. Comparatively, 5.1% of STMicroelectronics shares are held by institutional investors. 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.
Earnings and Valuation
This table compares Astera Labs and STMicroelectronics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astera Labs | $490.47 million | 30.19 | -$83.42 million | $0.22 | 408.14 |
| STMicroelectronics | $12.32 billion | 1.82 | $1.56 billion | $1.18 | 21.20 |
STMicroelectronics has higher revenue and earnings than Astera Labs. STMicroelectronics is trading at a lower price-to-earnings ratio than Astera Labs, indicating that it is currently the more affordable of the two stocks.
Summary
STMicroelectronics beats Astera Labs on 9 of the 13 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 STMicroelectronics
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.
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