Alpha and Omega Semiconductor (NASDAQ:AOSL) & Camtek (NASDAQ:CAMT) Critical Contrast

Camtek (NASDAQ:CAMT) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Camtek has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.64, indicating that its stock price is 164% more volatile than the S&P 500.

Insider and Institutional Ownership

41.9% of Camtek shares are held by institutional investors. Comparatively, 79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. 79.4% of Camtek shares are held by company insiders. Comparatively, 17.0% of Alpha and Omega Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Camtek and Alpha and Omega Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camtek	0	7	7	0	2.50
Alpha and Omega Semiconductor	1	3	3	0	2.29

Camtek currently has a consensus target price of $176.75, suggesting a potential upside of 7.00%. Alpha and Omega Semiconductor has a consensus target price of $41.50, suggesting a potential upside of 37.24%. Given Alpha and Omega Semiconductor’s higher possible upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than Camtek.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Camtek	7.40%	21.58%	10.89%
Alpha and Omega Semiconductor	-6.23%	-4.88%	-3.99%

Earnings and Valuation

This table compares Camtek and Alpha and Omega Semiconductor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camtek	$496.07 million	15.54	$50.72 million	$0.64	258.11
Alpha and Omega Semiconductor	$678.93 million	1.35	-$42.26 million	($1.41)	-21.45

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

Summary

Camtek beats Alpha and Omega Semiconductor on 10 of the 14 factors compared between the two stocks.

About Camtek

Camtek Ltd., together with its subsidiaries, develops, manufactures, and sells inspection and metrology equipment for semiconductor industry. The company provides Eagle-i, a system that delivers 2D inspection and metrology capabilities; Eagle-AP, which addresses the advanced packaging market using software and hardware technologies that deliver superior 2D and 3D inspection and metrology capabilities on the same platform; and Golden Eagle, a panel inspection and metrology system to address the challenges fanout wafer level packaging applications. It also develops automatic defect classification, which provides automatic defect classification of color images utilizing deep learning techniques to reduce and eliminate manual verification. In addition, the company offers MicroProf AP, a wafer metrology tool for applications at 3D packaging process steps; MicroProf DI, an optical inspection tool that enables inspection of structured and unstructured wafers for manufacturing process; MicroProf FE, a 2D/3D wafer metrology tool that serve front end HVM fab; MicroProf FS, an wafer metrology tool configurable for wafer foundry; MicroProf PT for hybrid metrology applications to common panel sizes; MicroProf MHU metrology tool, a material handling unit for semiconductor, MEMS, sapphire, and LED industries; MicroProf TL, an optical surface measurement tool for fully automatic 3D surface measurements; MicroProf 100, a universal surface metrology tool for determination of topography and film and sample thickness; MicroProf 200, a measuring device for contactless and non-destructive characterization of surfaces and films; and MicroProf 300, a SurfaceSens technology for quality assurance, development, and manufacturing. It serves semiconductor manufacturers, outsourced semiconductor assembly and test, integrated device manufacturers, and wafer level packaging subcontractors. Camtek Ltd. was incorporated in 1987 and is headquartered in Migdal Haemek, Israel.

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 transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.