Head to Head Survey: Meta Materials (NASDAQ:MMAT) and Alpha and Omega Semiconductor (NASDAQ:AOSL)

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

Risk and Volatility

Meta Materials has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.39, meaning that its stock price is 139% more volatile than the S&P 500.

Earnings & Valuation

This table compares Meta Materials and Alpha and Omega Semiconductor’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meta Materials	$7.97 million	2.22	-$398.23 million	($76.00)	-0.04
Alpha and Omega Semiconductor	$691.32 million	0.87	$12.36 million	($0.63)	-33.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Meta Materials	-4,999.15%	-82.48%	-68.53%
Alpha and Omega Semiconductor	-2.68%	0.64%	0.47%

Institutional & Insider Ownership

6.5% of Meta Materials shares are owned by institutional investors. Comparatively, 79.0% of Alpha and Omega Semiconductor shares are owned by institutional investors. 0.4% of Meta Materials shares are owned by company insiders. Comparatively, 17.9% of Alpha and Omega Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Meta Materials and Alpha and Omega Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meta Materials	0	0	0	0	N/A
Alpha and Omega Semiconductor	1	0	2	0	2.33

Alpha and Omega Semiconductor has a consensus price target of $31.00, indicating a potential upside of 45.20%. Given Alpha and Omega Semiconductor’s higher probable upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than Meta Materials.

Summary

Alpha and Omega Semiconductor beats Meta Materials on 11 of the 13 factors compared between the two stocks.

About Meta Materials

Meta Materials Inc., a smart materials and photonics company, develops, manufactures, and sells various functional materials and nanocomposites. The company products include metaAIR, a laser glare protection eyewear; NANOWEB, a transparent conductive film; holoOPTIX, a holographic optical element; glucoWISE, a non-invasive glucose measurement device; and metaSURFACE, which allows an enhancement in signal to noise ratio of up to 40 times for magnetic resonance imaging scans. It also develops and produces nano-optic structures and color-shifting foils that are used in authentication and brand protection applications in various markets, including banknotes, secure government documents, and commercial branding. In addition, the company develops NPORE, a ceramic nanoporous membrane separator for lithium-ion batteries. Its customers are OEM providers in various industries, including aerospace, automotive, consumer electronics, communications, energy, banknote and brand security, and medical devices. The company was formerly known as Torchlight Energy Resources, Inc. and changed its name to Meta Materials Inc. in June 2021. Meta Materials Inc. was incorporated in 2011 and is headquartered in Dartmouth, Canada.

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 650V SiC MOSFET, a switching solutions for solar inverters, motor drives, industrial power supplies, and energy storage systems. Further, it provides 750V SiC MOSFET for electric vehicle systems such as the on-board charge; transient voltage suppressors; silicon carbide product for industrial applications, such as solar inverters, UPS, and battery management systems. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.