Reviewing ams-OSRAM (OTCMKTS:AMSSY) & NVIDIA (NASDAQ:NVDA)

ams-OSRAM (OTCMKTS:AMSSY) and NVIDIA (NASDAQ:NVDA) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares ams-OSRAM and NVIDIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	-9.74%	-7.58%	-1.01%
NVIDIA	63.66%	96.04%	71.00%

Volatility and Risk

ams-OSRAM has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.

Institutional and Insider Ownership

65.3% of NVIDIA shares are held by institutional investors. 3.9% of NVIDIA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ams-OSRAM and NVIDIA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	$3.76 billion	0.59	-$147.08 million	($1.91)	-5.85
NVIDIA	$215.94 billion	24.36	$120.07 billion	$7.91	27.60

NVIDIA has higher revenue and earnings than ams-OSRAM. ams-OSRAM is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for ams-OSRAM and NVIDIA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	1	2	1	0	2.00
NVIDIA	0	2	50	3	3.02

NVIDIA has a consensus target price of $324.34, suggesting a potential upside of 48.58%. Given NVIDIA’s stronger consensus rating and higher possible upside, analysts clearly believe NVIDIA is more favorable than ams-OSRAM.

Dividends

ams-OSRAM pays an annual dividend of $0.13 per share and has a dividend yield of 1.1%. NVIDIA pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. ams-OSRAM pays out -6.7% of its earnings in the form of a dividend. NVIDIA pays out 12.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NVIDIA has increased its dividend for 1 consecutive years. ams-OSRAM is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

NVIDIA beats ams-OSRAM on 16 of the 18 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.