Analyzing Rubrik (NYSE:RBRK) and Astera Labs (NASDAQ:ALAB)

Astera Labs (NASDAQ:ALAB) and Rubrik (NYSE:RBRK) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Risk and Volatility

Astera Labs has a beta of 3.94, indicating that its share price is 294% more volatile than the S&P 500. Comparatively, Rubrik has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Astera Labs and Rubrik, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	11	12	0	2.52
Rubrik	1	0	28	0	2.93

Astera Labs presently has a consensus target price of $233.75, suggesting a potential downside of 35.38%. Rubrik has a consensus target price of $93.00, suggesting a potential upside of 34.36%. Given Rubrik’s stronger consensus rating and higher probable upside, analysts plainly believe Rubrik is more favorable than Astera Labs.

Profitability

This table compares Astera Labs and Rubrik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astera Labs	26.72%	18.49%	16.60%
Rubrik	-20.25%	N/A	-10.27%

Valuation and Earnings

This table compares Astera Labs and Rubrik”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$1.00 billion	61.91	$219.13 million	$1.48	244.40
Rubrik	$1.42 billion	10.00	-$348.83 million	($1.45)	-47.74

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

Insider & Institutional Ownership

60.5% of Astera Labs shares are held by institutional investors. Comparatively, 49.5% of Rubrik shares are held by institutional investors. 10.4% of Astera Labs shares are held by insiders. Comparatively, 13.7% of Rubrik shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Astera Labs beats Rubrik on 9 of the 14 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 Rubrik

Rubrik, Inc. provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors. Rubrik, Inc. was formerly known as Scaledata, Inc. and changed its name to Rubrik, Inc. in October 2014. The company was incorporated in 2013 and is based in Palo Alto, California.