Contrasting Alpha and Omega Semiconductor (NASDAQ:AOSL) and ams-OSRAM (OTCMKTS:AMSSY)

Alpha and Omega Semiconductor (NASDAQ:AOSL) and ams-OSRAM (OTCMKTS:AMSSY) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alpha and Omega Semiconductor	-15.06%	-3.78%	-3.03%
ams-OSRAM	-3.76%	6.02%	0.98%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Alpha and Omega Semiconductor and ams-OSRAM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha and Omega Semiconductor	2	2	1	0	1.80
ams-OSRAM	1	3	0	0	1.75

Alpha and Omega Semiconductor currently has a consensus target price of $23.67, indicating a potential upside of 9.31%. Given Alpha and Omega Semiconductor’s stronger consensus rating and higher probable upside, research analysts clearly believe Alpha and Omega Semiconductor is more favorable than ams-OSRAM.

Volatility and Risk

Alpha and Omega Semiconductor has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha and Omega Semiconductor	$696.16 million	0.93	-$96.98 million	($3.47)	-6.24
ams-OSRAM	$3.76 billion	0.28	-$850.53 million	($0.90)	-5.77

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

Institutional & Insider Ownership

79.0% of Alpha and Omega Semiconductor shares are owned by institutional investors. 16.7% of Alpha and Omega Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Alpha and Omega Semiconductor beats ams-OSRAM on 9 of the 14 factors compared between the two stocks.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

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.