Ambarella, Inc. (AMBA) vs AXT Inc (AXTI)

Ambarella, Inc. and AXT Inc are both Semiconductor Equipment & Materials companies. AXT Inc is the larger, with a market value of $3.8B against $2.8B — 1.4× the size. Ambarella, Inc. has negative trailing earnings, so its P/E is not meaningful; AXT Inc trades at 1,716×. AXT Inc grew revenue faster over the last twelve months: 45.8% against 20.0%. AXT Inc has the higher net margin (3.23% vs −13.5%) and the higher return on invested capital (0.44% vs −11.2%). Across the 18 metrics below, AXT Inc leads on 10 and Ambarella, Inc. on 8.

Valuation

Metric AMBA AXTI Semiconductor Equipment & Materials median
P/E n/m 1,715.67 45.03
P/S 6.48 25.11 4.64
P/B 4.36 3.47 3.22
Price to free cash flow n/m n/m 48.18
EV/EBITDA n/m 205.99 33.11
EV/Sales 5.82 22.20 5.52
Earnings yield (2.10%) 0.06% 1.41%
Free cash flow yield (0.21%) (0.62%) 1.67%

Profitability

Metric AMBA AXTI Semiconductor Equipment & Materials median
Gross margin 58.52% 32.18% 43.95%
Operating margin (14.90%) 3.09% 10.32%
Net margin (13.48%) 3.23% 7.45%
Free cash flow margin 2.33% (15.59%) 6.77%
Return on equity (9.41%) 0.73% 4.78%
Return on assets (7.58%) 0.57% 3.62%
Return on invested capital (11.19%) 0.44% 6.10%

Growth

Metric AMBA AXTI Semiconductor Equipment & Materials median
Revenue growth (TTM) 20.04% 45.81% 14.60%
EPS growth (last fiscal year) 37.32% (81.48%) (4.56%)
Revenue growth, 5-year CAGR 11.87% (1.52%) 10.11%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AMBA AXTI Semiconductor Equipment & Materials median
Debt to equity 0.00 0.09 0.09
Current ratio 2.85 4.77 3.66
Net debt to EBITDA 5.48 5.10 (0.49)

Dividend

Metric AMBA AXTI Semiconductor Equipment & Materials median
Dividend yield — — 0.42%
Payout ratio — — 0.19

Size

Metric AMBA AXTI Semiconductor Equipment & Materials median
Market cap 2.80b 3.80b 3.80b

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