Ambarella (NASDAQ:AMBA – Get Free Report) and Quantum-Si (NASDAQ:QSI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Volatility & Risk
Ambarella has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500. Comparatively, Quantum-Si has a beta of 3.18, meaning that its stock price is 218% more volatile than the S&P 500.
Profitability
This table compares Ambarella and Quantum-Si’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% |
| Quantum-Si | -5,605.88% | -47.35% | -42.66% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ambarella | 1 | 5 | 7 | 1 | 2.57 |
| Quantum-Si | 1 | 1 | 0 | 0 | 1.50 |
Ambarella currently has a consensus target price of $100.50, indicating a potential upside of 42.13%. Quantum-Si has a consensus target price of $1.00, indicating a potential upside of 8.55%. Given Ambarella’s stronger consensus rating and higher possible upside, analysts plainly believe Ambarella is more favorable than Quantum-Si.
Valuation and Earnings
This table compares Ambarella and Quantum-Si”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ambarella | $390.70 million | 7.94 | -$75.86 million | ($1.61) | -43.92 |
| Quantum-Si | $2.44 million | 82.21 | -$101.34 million | ($0.51) | -1.81 |
Ambarella has higher revenue and earnings than Quantum-Si. Ambarella is trading at a lower price-to-earnings ratio than Quantum-Si, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
82.1% of Ambarella shares are held by institutional investors. Comparatively, 39.9% of Quantum-Si shares are held by institutional investors. 4.5% of Ambarella shares are held by insiders. Comparatively, 22.0% of Quantum-Si shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Ambarella beats Quantum-Si on 10 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 Quantum-Si
Quantum-Si incorporated, a life sciences company, engages in the development of single-molecule detection platform to enable Next Generation Protein Sequencing (NGPS). The company's platform is comprised of the Platinum NGPS instrument; the Platinum Analysis Software service; and reagent kits and semiconductor chips for use with its instruments. It is used in protein identification, protein variants, antibody characterization, biomarker identification, and post translational modification analysis applications. The company was founded in 2013 is headquartered in Branford, Connecticut.
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