Reviewing Ambarella (NASDAQ:AMBA) and Energous (NASDAQ:WATT)
by Mitch Edgeman · The Markets DailyAmbarella (NASDAQ:AMBA – Get Free Report) and Energous (NASDAQ:WATT – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.
Institutional and Insider Ownership
82.1% of Ambarella shares are owned by institutional investors. Comparatively, 4.3% of Energous shares are owned by institutional investors. 4.5% of Ambarella shares are owned by company insiders. Comparatively, 0.2% of Energous shares are owned by company 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.
Risk & Volatility
Ambarella has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, Energous has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Profitability
This table compares Ambarella and Energous’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ambarella | -13.48% | -10.03% | -7.73% |
| Energous | -76.37% | -28.67% | -24.91% |
Valuation & Earnings
This table compares Ambarella and Energous”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ambarella | $390.70 million | 7.09 | -$75.86 million | ($1.29) | -48.66 |
| Energous | $5.63 million | 10.76 | -$9.59 million | ($2.21) | -4.95 |
Energous has lower revenue, but higher earnings than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than Energous, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Ambarella and Energous, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ambarella | 1 | 6 | 5 | 0 | 2.33 |
| Energous | 1 | 1 | 0 | 0 | 1.50 |
Ambarella presently has a consensus price target of $89.56, indicating a potential upside of 42.67%. Given Ambarella’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ambarella is more favorable than Energous.
Summary
Ambarella beats Energous on 11 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 Energous
Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.