Reviewing ams-OSRAM (OTCMKTS:AMSSY) & Analog Devices (NASDAQ:ADI)

Analog Devices (NASDAQ:ADI) and ams-OSRAM (OTCMKTS:AMSSY) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Insider and Institutional Ownership

86.8% of Analog Devices shares are owned by institutional investors. 0.4% of Analog Devices shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Analog Devices has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.

Valuation & Earnings

This table compares Analog Devices and ams-OSRAM”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Analog Devices	$11.02 billion	17.85	$2.27 billion	$8.43	48.16
ams-OSRAM	$3.76 billion	0.61	-$147.08 million	($1.91)	-5.96

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Analog Devices and ams-OSRAM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Analog Devices	0	3	29	1	2.94
ams-OSRAM	0	2	1	0	2.33

Analog Devices presently has a consensus target price of $460.55, suggesting a potential upside of 13.45%. Given Analog Devices’ stronger consensus rating and higher possible upside, equities analysts clearly believe Analog Devices is more favorable than ams-OSRAM.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Analog Devices	29.79%	16.39%	11.49%
ams-OSRAM	-9.74%	-7.58%	-1.01%

Summary

Analog Devices beats ams-OSRAM on 14 of the 15 factors compared between the two stocks.

About Analog Devices

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. It also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, the company provides digital signal processing and system products for numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

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.