Comparing Alpha and Omega Semiconductor (NASDAQ:AOSL) and Marvell Technology (NASDAQ:MRVL)

Alpha and Omega Semiconductor (NASDAQ:AOSL) and Marvell Technology (NASDAQ:MRVL) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Alpha and Omega Semiconductor and Marvell Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha and Omega Semiconductor	1	0	2	0	2.33
Marvell Technology	0	1	21	0	2.95

Alpha and Omega Semiconductor presently has a consensus target price of $32.00, indicating a potential downside of 10.81%. Marvell Technology has a consensus target price of $85.00, indicating a potential upside of 25.42%. Given Marvell Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Marvell Technology is more favorable than Alpha and Omega Semiconductor.

Volatility and Risk

Alpha and Omega Semiconductor has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, Marvell Technology has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

79.0% of Alpha and Omega Semiconductor shares are owned by institutional investors. Comparatively, 83.5% of Marvell Technology shares are owned by institutional investors. 17.9% of Alpha and Omega Semiconductor shares are owned by insiders. Comparatively, 0.3% of Marvell Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Alpha and Omega Semiconductor and Marvell Technology’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha and Omega Semiconductor	$657.50 million	1.57	$12.36 million	($0.34)	-105.53
Marvell Technology	$5.51 billion	10.65	-$933.40 million	($1.13)	-59.97

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

Profitability

This table compares Alpha and Omega Semiconductor and Marvell Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha and Omega Semiconductor	-1.44%	1.39%	1.05%
Marvell Technology	-18.33%	4.51%	3.17%

Summary

Marvell Technology beats Alpha and Omega Semiconductor 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 650V SiC MOSFET, a switching solutions for solar inverters, motor drives, industrial power supplies, and energy storage systems. Further, it provides 750V SiC MOSFET for electric vehicle systems such as the on-board charge; transient voltage suppressors; silicon carbide product for industrial applications, such as solar inverters, UPS, and battery management systems. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

About Marvell Technology

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits. The company also provides electro-optical products, including pulse amplitude modulations, coherent digital signal processors, laser drivers, trans-impedance amplifiers, silicon photonics, and data center interconnect solutions; fibre channel products comprising host bus adapters and controllers; storage controllers for hard disk drives and solid-state-drives; and host system interfaces, including serial attached SCSI, serial advanced technology attachment, peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics. It has operations in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.