Ambarella, Inc. (AMBA) vs Veeco Instruments Inc. (VECO)

Ambarella, Inc. and Veeco Instruments Inc. are both Semiconductor Equipment & Materials companies. Ambarella, Inc. is the larger, with a market value of $2.4B against $2.0B — 1.2× the size. Ambarella, Inc. has negative trailing earnings, so its P/E is not meaningful; Veeco Instruments Inc. trades at 80.7×. Ambarella, Inc. grew revenue faster over the last twelve months: 20.0% against 6.58%. Veeco Instruments Inc. has the higher net margin (0.00% vs −13.5%) and the higher return on invested capital (2.05% vs −11.2%). Across the 18 metrics below, Veeco Instruments Inc. leads on 13 and Ambarella, Inc. on 5.

Valuation

Metric AMBA VECO Semiconductor Equipment & Materials median
P/E n/m 80.74 33.70
P/S 5.85 2.85 4.22
P/B 3.94 2.24 2.94
Price to free cash flow n/m 16.46 31.49
EV/EBITDA n/m 44.09 22.64
EV/Sales 5.20 2.54 4.97
Earnings yield (2.32%) 1.24% 2.02%
Free cash flow yield (0.23%) 6.08% 2.27%

Profitability

Metric AMBA VECO Semiconductor Equipment & Materials median
Gross margin 58.52% 37.39% 46.86%
Operating margin (14.90%) 3.02% 12.02%
Net margin (13.48%) 0.00% 10.16%
Free cash flow margin 2.33% 17.32% 6.73%
Return on equity (9.41%) 0.00% 5.31%
Return on assets (7.58%) 0.00% 4.10%
Return on invested capital (11.19%) 2.05% 6.36%

Growth

Metric AMBA VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) 20.04% 6.58% 15.82%
EPS growth (last fiscal year) 37.32% (52.03%) (4.56%)
Revenue growth, 5-year CAGR 11.87% 7.90% 10.11%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AMBA VECO Semiconductor Equipment & Materials median
Debt to equity 0.00 0.25 0.09
Current ratio 2.85 3.87 3.56
Net debt to EBITDA 5.48 (2.95) (0.49)

Dividend

Metric AMBA VECO Semiconductor Equipment & Materials median
Dividend yield — — 0.59%
Payout ratio — — 0.16

Size

Metric AMBA VECO Semiconductor Equipment & Materials median
Market cap 2.44b 2.03b 3.04b

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