Ambarella (NASDAQ:AMBA – Get Free Report) and Ideal Power (NASDAQ:IPWR – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Analyst Ratings
This is a breakdown of current recommendations for Ambarella and Ideal Power, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ambarella | 1 | 4 | 7 | 0 | 2.50 |
| Ideal Power | 0 | 0 | 1 | 0 | 3.00 |
Ambarella currently has a consensus target price of $69.75, suggesting a potential upside of 23.45%. Ideal Power has a consensus target price of $14.00, suggesting a potential upside of 91.78%. Given Ideal Power’s stronger consensus rating and higher possible upside, analysts plainly believe Ideal Power is more favorable than Ambarella.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Ambarella | -78.36% | -24.86% | -21.45% |
| Ideal Power | -3,560.07% | -67.87% | -59.10% |
Valuation & Earnings
This table compares Ambarella and Ideal Power’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ambarella | $218.81 million | 10.58 | -$169.42 million | ($4.26) | -13.26 |
| Ideal Power | $200,000.00 | 280.32 | -$9.95 million | ($1.59) | -4.59 |
Ideal Power has lower revenue, but higher earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than Ideal Power, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
82.1% of Ambarella shares are owned by institutional investors. Comparatively, 16.4% of Ideal Power shares are owned by institutional investors. 5.7% of Ambarella shares are owned by insiders. Comparatively, 5.0% of Ideal Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Ambarella has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Ideal Power has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Summary
Ambarella beats Ideal Power on 8 of the 14 factors compared between the two stocks.
About Ambarella
Ambarella, Inc. develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; enterprise and public class, and home security camera; and robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the enterprise, home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
About Ideal Power
Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.
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