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

Insider & Institutional Ownership

70.5% of Alpha and Omega Semiconductor shares are owned by institutional investors. 21.7% of Alpha and Omega Semiconductor shares are owned by company 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Aquantia N/A N/A N/A
Alpha and Omega Semiconductor 3.92% 4.85% 3.78%

Earnings & Valuation

This table compares Aquantia and Alpha and Omega Semiconductor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aquantia $86.67 million 4.23 -$440,000.00 N/A N/A
Alpha and Omega Semiconductor $383.34 million 1.10 $13.82 million $0.61 28.64

Alpha and Omega Semiconductor has higher revenue and earnings than Aquantia.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Aquantia and Alpha and Omega Semiconductor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aquantia 0 0 5 0 3.00
Alpha and Omega Semiconductor 0 1 3 0 2.75

Aquantia currently has a consensus target price of $14.80, indicating a potential upside of 35.28%. Alpha and Omega Semiconductor has a consensus target price of $25.00, indicating a potential upside of 43.10%. Given Alpha and Omega Semiconductor’s higher probable upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than Aquantia.

Summary

Alpha and Omega Semiconductor beats Aquantia on 8 of the 11 factors compared between the two stocks.

Aquantia Company Profile

Aquantia Corp is engaged in developing and supplying connectivity solutions for data centers, enterprise and wireless local area network (WLAN) applications. The Company offers 10 gigabyte Ethernet and Multi-Gig Ethernet Silicon product for data center and cloud, and the enterprise and WLAN markets. For data center and cloud market, it offers 10GBASE-T PHYs product line, which includes 28 nanometer technology products, such as AQ2402, AQ2403, AQ2203 and AQ2104; 40 nanometer technology products, such as AQ1402, AQ1202 and AQ1103, and 90 nanometer technology product, AQ1002. For enterprise and WLAN market, it offers AQrate product line, including 28 nanometer technology products, such as AQR405, AQR205 and AQR105. Its AQrate product line consists of single, dual and quad-port configurations for applications ranging from client personal computers and others for single and dual-port devices, to Enterprise and Campus Ethernet switches for the quad-port versions.

Alpha and Omega Semiconductor Company Profile

Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of power semiconductors. The Company’s portfolio of power semiconductors includes approximately 1,600 products, as of June 30, 2016. The Company’s product portfolio consists of two categories: power discretes and power integrated circuits (ICs). The Company’s portfolio of products focuses high-volume applications, including personal computers, flat panel televisions, light-emitting diode (LED) lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for television, computers, servers and telecommunications equipment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. The Company conducts its operations primarily in the United States, Hong Kong, China, Taiwan, Korea and Japan. Its products are applicable in desktop and tablet personal computers, flat panel displays and televisions.

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