Reviewing GCT Semiconductor (NYSE:GCTS) and ams-OSRAM (OTCMKTS:AMSSY)

ams-OSRAM (OTCMKTS:AMSSY) and GCT Semiconductor (NYSE:GCTS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for ams-OSRAM and GCT Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	2	2	0	0	1.50
GCT Semiconductor	2	0	2	0	2.00

GCT Semiconductor has a consensus target price of $3.50, suggesting a potential upside of 181.12%. Given GCT Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe GCT Semiconductor is more favorable than ams-OSRAM.

Earnings & Valuation

This table compares ams-OSRAM and GCT Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	$3.76 billion	0.28	-$850.53 million	($0.90)	-5.77
GCT Semiconductor	$9.13 million	7.79	-$12.38 million	($0.77)	-1.62

GCT Semiconductor has lower revenue, but higher earnings than ams-OSRAM. ams-OSRAM is trading at a lower price-to-earnings ratio than GCT Semiconductor, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ams-OSRAM has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

28.1% of GCT Semiconductor shares are owned by institutional investors. 5.4% of GCT Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ams-OSRAM and GCT Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	-3.76%	6.02%	0.98%
GCT Semiconductor	-1,010.20%	N/A	-198.45%

Summary

GCT Semiconductor beats ams-OSRAM on 10 of the 14 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.