Head-To-Head Analysis: Navitas Semiconductor (NASDAQ:NVTS) versus Alpha and Omega Semiconductor (NASDAQ:AOSL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-84.61%	-23.64%	-20.18%
Alpha and Omega Semiconductor	-3.46%	-0.23%	-0.18%

Institutional & Insider Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. Comparatively, 79.0% of Alpha and Omega Semiconductor shares are owned by institutional investors. 31.8% of Navitas Semiconductor shares are owned by insiders. Comparatively, 16.9% of Alpha and Omega Semiconductor 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.

Risk and Volatility

Navitas Semiconductor has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.48, meaning that its share price is 148% more volatile than the S&P 500.

Earnings and Valuation

This table compares Navitas Semiconductor 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
Navitas Semiconductor	$83.30 million	4.14	-$145.43 million	($0.45)	-4.02
Alpha and Omega Semiconductor	$666.40 million	0.82	-$11.08 million	($0.80)	-23.10

Alpha and Omega Semiconductor has higher revenue and earnings than Navitas Semiconductor. Alpha and Omega Semiconductor is trading at a lower price-to-earnings ratio than Navitas Semiconductor, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Navitas Semiconductor and Alpha and Omega Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	0	2	5	0	2.71
Alpha and Omega Semiconductor	1	0	2	0	2.33

Navitas Semiconductor currently has a consensus target price of $4.11, indicating a potential upside of 126.91%. Alpha and Omega Semiconductor has a consensus target price of $38.67, indicating a potential upside of 109.24%. Given Navitas Semiconductor’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Navitas Semiconductor is more favorable than Alpha and Omega Semiconductor.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.