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

Ambarella, Inc. and Veeco Instruments Inc. are both Semiconductor Equipment & Materials companies. Ambarella, Inc. and Veeco Instruments Inc. are of similar size ($2.8B and $2.8B). Ambarella, Inc. has negative trailing earnings, so its P/E is not meaningful; Veeco Instruments Inc. trades at 113×. Ambarella, Inc. grew revenue faster over the last twelve months: 20.0% against −2.52%. Veeco Instruments Inc. has the higher net margin (3.35% vs −13.5%) and the higher return on invested capital (1.64% 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 112.62 45.03
P/S 6.48 3.82 4.64
P/B 4.36 2.89 3.22
Price to free cash flow n/m 30.65 48.18
EV/EBITDA n/m 63.71 33.11
EV/Sales 5.82 3.57 5.52
Earnings yield (2.10%) 0.89% 1.41%
Free cash flow yield (0.21%) 3.26% 1.67%

Profitability

Metric AMBA VECO Semiconductor Equipment & Materials median
Gross margin 58.52% 37.92% 43.95%
Operating margin (14.90%) 2.69% 10.32%
Net margin (13.48%) 3.35% 7.45%
Free cash flow margin 2.33% 12.47% 6.77%
Return on equity (9.41%) 2.60% 4.78%
Return on assets (7.58%) 1.70% 3.62%
Return on invested capital (11.19%) 1.64% 6.10%

Growth

Metric AMBA VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) 20.04% (2.52%) 14.60%
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 3.93 3.66
Net debt to EBITDA 5.48 (2.95) (0.49)

Dividend

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

Size

Metric AMBA VECO Semiconductor Equipment & Materials median
Market cap 2.80b 2.76b 3.80b

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