Astera Labs (ALAB) & Its Rivals Critical Analysis

Astera Labs (NASDAQ:ALAB) is one of 173 public companies in the “Semiconductors & related devices” industry, but how does it weigh in compared to its peers? We will compare Astera Labs to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Institutional & Insider Ownership

60.5% of Astera Labs shares are held by institutional investors. Comparatively, 57.2% of shares of all “Semiconductors & related devices” companies are held by institutional investors. 10.0% of shares of all “Semiconductors & related devices” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Astera Labs and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Astera Labs	$396.29 million	-$83.42 million	-41.72
Astera Labs Competitors	$29.53 billion	$592.42 million	56.17

Astera Labs’ peers have higher revenue and earnings than Astera Labs. Astera Labs is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Astera Labs and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astera Labs	-21.05%	-10.40%	-9.56%
Astera Labs Competitors	-470.17%	-79.71%	-11.21%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Astera Labs and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	1	12	1	3.00
Astera Labs Competitors	2528	10091	19786	706	2.56

Astera Labs presently has a consensus price target of $112.77, suggesting a potential upside of 56.23%. As a group, “Semiconductors & related devices” companies have a potential upside of 642.24%. Given Astera Labs’ peers higher possible upside, analysts clearly believe Astera Labs has less favorable growth aspects than its peers.

Summary

Astera Labs beats its peers on 7 of the 12 factors compared.

Astera Labs Company Profile

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.