Financial Analysis: Wolfspeed (NYSE:WOLF) versus ams-OSRAM (OTCMKTS:AUKUF)

Wolfspeed (NYSE:WOLF) and ams-OSRAM (OTCMKTS:AUKUF) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Wolfspeed and ams-OSRAM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolfspeed	1	8	5	0	2.29
ams-OSRAM	1	0	0	0	1.00

Wolfspeed currently has a consensus price target of $43.63, indicating a potential upside of 70.68%. Given Wolfspeed’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Wolfspeed is more favorable than ams-OSRAM.

Earnings & Valuation

This table compares Wolfspeed and ams-OSRAM’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolfspeed	$921.90 million	3.49	-$329.90 million	($6.08)	-4.20
ams-OSRAM	N/A	N/A	N/A	$1.30	0.88

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

Insider and Institutional Ownership

38.1% of ams-OSRAM shares are owned by institutional investors. 0.9% of Wolfspeed shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wolfspeed	-87.35%	-19.35%	-4.16%
ams-OSRAM	N/A	N/A	N/A

Summary

ams-OSRAM beats Wolfspeed on 6 of the 11 factors compared between the two stocks.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.

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 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 was founded in 1981 and is headquartered in Premstätten, Austria.