Head to Head Review: Ambarella (NASDAQ:AMBA) and Marvell Technology (NASDAQ:MRVL)
by Sarita Garza · The Markets DailyAmbarella (NASDAQ:AMBA – Get Free Report) and Marvell Technology (NASDAQ:MRVL – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Earnings & Valuation
This table compares Ambarella and Marvell Technology”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ambarella | $390.70 million | 7.61 | -$75.86 million | ($1.61) | -42.10 |
| Marvell Technology | $8.19 billion | 29.86 | $2.67 billion | $2.92 | 95.79 |
Marvell Technology has higher revenue and earnings than Ambarella. Ambarella 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 Ambarella and Marvell Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ambarella | -17.18% | -10.94% | -8.48% |
| Marvell Technology | 28.99% | 13.83% | 9.08% |
Volatility and Risk
Ambarella has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500. Comparatively, Marvell Technology has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Ambarella and Marvell Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ambarella | 1 | 5 | 7 | 1 | 2.57 |
| Marvell Technology | 0 | 6 | 28 | 2 | 2.89 |
Ambarella currently has a consensus price target of $99.75, suggesting a potential upside of 47.17%. Marvell Technology has a consensus price target of $224.68, suggesting a potential downside of 19.67%. Given Ambarella’s higher possible upside, equities research analysts plainly believe Ambarella is more favorable than Marvell Technology.
Insider & Institutional Ownership
82.1% of Ambarella shares are owned by institutional investors. Comparatively, 83.5% of Marvell Technology shares are owned by institutional investors. 4.5% of Ambarella shares are owned by insiders. Comparatively, 0.1% of Marvell Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Marvell Technology beats Ambarella on 13 of the 15 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 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.