Cabot Microelectronics (CCMP) vs. Alpha & Omega Semiconductor (AOSL) Head-To-Head Analysis

Cabot Microelectronics (NASDAQ: CCMP) and Alpha & Omega Semiconductor (NASDAQ:AOSL) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Cabot Microelectronics 11.74% 16.99% 12.09%
Alpha & Omega Semiconductor 4.82% 4.84% 3.72%

Risk and Volatility

Cabot Microelectronics has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Alpha & Omega Semiconductor has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

95.1% of Cabot Microelectronics shares are owned by institutional investors. Comparatively, 70.3% of Alpha & Omega Semiconductor shares are owned by institutional investors. 3.3% of Cabot Microelectronics shares are owned by company insiders. Comparatively, 21.7% of Alpha & Omega Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Cabot Microelectronics pays an annual dividend of $1.60 per share and has a dividend yield of 1.5%. Alpha & Omega Semiconductor does not pay a dividend. Cabot Microelectronics pays out 44.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Cabot Microelectronics and Alpha & Omega Semiconductor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cabot Microelectronics $507.18 million 5.41 $86.95 million $3.56 30.09
Alpha & Omega Semiconductor $383.34 million 0.96 $13.82 million $0.56 27.59

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

Analyst Ratings

This is a breakdown of current ratings for Cabot Microelectronics and Alpha & Omega Semiconductor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Microelectronics 0 1 3 0 2.75
Alpha & Omega Semiconductor 0 1 3 0 2.75

Cabot Microelectronics presently has a consensus target price of $109.50, indicating a potential upside of 2.23%. Alpha & Omega Semiconductor has a consensus target price of $24.00, indicating a potential upside of 55.34%. Given Alpha & Omega Semiconductor’s higher probable upside, analysts clearly believe Alpha & Omega Semiconductor is more favorable than Cabot Microelectronics.

Summary

Cabot Microelectronics beats Alpha & Omega Semiconductor on 11 of the 14 factors compared between the two stocks.

About Cabot Microelectronics

Cabot Microelectronics Corporation supplies polishing slurries and pads used in the manufacture of integrated circuit (IC) devices within the semiconductor industry, in a process called chemical mechanical planarization (CMP). The Company is engaged in the development, manufacture and sale of CMP consumables. The Company develops, produces and sells CMP slurries for polishing conducting and insulating materials used in IC devices, and also for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells CMP polishing pads, which are used in conjunction with slurries in the CMP process. The Company also pursues other surface modification applications through its engineered surface finishes (ESF) business. The Company offers CMP polishing pads, under the Epic and NexPlanar brand names, for a range of applications and technology nodes.

About Alpha & Omega Semiconductor

Alpha and Omega Semiconductor Limited and its subsidiaries design, develop, and supply various power semiconductors. It offers various power discrete products, including low, medium, and high voltage power metal-oxide-semiconductor field-effect transistors (MOSFETs); and SRFETs, XSFET, electrostatic discharges, protected MOSFETs, and insulated gate bipolar transistors, which are used for routing current and switching voltages in power control circuits. The company also provides power IC products comprising devices that are used for power management and power delivery; and analog power devices that are used for circuit protection and signal switching. Its power discrete products are used in applications, such as smart phone charges, battery packs, notebooks, desktop and servers, data centers, basic stations, graphics card, game boxes, TVs, AC adapters, power supplies, e-bikes, motor control, power tools, e-vehicles, white goods and industrial motor drives, UPS systems, wind turbines, solar inverters, and industrial welding; and power ICs have applications in flat panel displays, TVs, notebooks, ultrabooks, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment, as well as desktop PCs, tablets, smartphones, and portable electronic devices. The company markets its products directly, as well as through distributors and original design manufacturers to original equipment manufacturers. It serves customers in the consumer, computing, communications, and industrial markets primarily in the United States, Hong Kong, China, Taiwan, Korea, Germany, and Japan. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

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