Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) and Park Electrochemical Corporation (NYSE:PKE) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitabiliy, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
70.7% of Alpha and Omega Semiconductor Limited shares are owned by institutional investors. Comparatively, 82.5% of Park Electrochemical Corporation shares are owned by institutional investors. 21.7% of Alpha and Omega Semiconductor Limited shares are owned by company insiders. Comparatively, 8.0% of Park Electrochemical Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Alpha and Omega Semiconductor Limited and Park Electrochemical Corporation’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Alpha and Omega Semiconductor Limited | $376.74 million | 1.04 | $38.38 million | $0.47 | 35.04 |
| Park Electrochemical Corporation | $110.54 million | 3.34 | $11.91 million | $0.38 | 48.03 |
Alpha and Omega Semiconductor Limited has higher revenue and earnings than Park Electrochemical Corporation. Alpha and Omega Semiconductor Limited is trading at a lower price-to-earnings ratio than Park Electrochemical Corporation, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Alpha and Omega Semiconductor Limited and Park Electrochemical Corporation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alpha and Omega Semiconductor Limited | 0 | 0 | 3 | 0 | 3.00 |
| Park Electrochemical Corporation | 0 | 0 | 1 | 0 | 3.00 |
Alpha and Omega Semiconductor Limited currently has a consensus price target of $30.00, suggesting a potential upside of 82.15%. Park Electrochemical Corporation has a consensus price target of $22.00, suggesting a potential upside of 20.55%. Given Alpha and Omega Semiconductor Limited’s higher probable upside, equities analysts plainly believe Alpha and Omega Semiconductor Limited is more favorable than Park Electrochemical Corporation.
Dividends
Park Electrochemical Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Alpha and Omega Semiconductor Limited does not pay a dividend. Park Electrochemical Corporation pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Alpha and Omega Semiconductor Limited and Park Electrochemical Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alpha and Omega Semiconductor Limited | 3.09% | 4.25% | 3.34% |
| Park Electrochemical Corporation | 6.99% | 4.92% | 2.89% |
Volatility and Risk
Alpha and Omega Semiconductor Limited has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Park Electrochemical Corporation has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Summary
Alpha and Omega Semiconductor Limited beats Park Electrochemical Corporation on 8 of the 15 factors compared between the two stocks.
Alpha and Omega Semiconductor Limited Company Profile
Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of power semiconductors. The Company’s portfolio of power semiconductors includes approximately 1,600 products, as of June 30, 2016. The Company’s product portfolio consists of two categories: power discretes and power integrated circuits (ICs). The Company’s portfolio of products focuses high-volume applications, including personal computers, flat panel televisions, light-emitting diode (LED) lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for television, computers, servers and telecommunications equipment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. The Company conducts its operations primarily in the United States, Hong Kong, China, Taiwan, Korea and Japan. Its products are applicable in desktop and tablet personal computers, flat panel displays and televisions.
Park Electrochemical Corporation Company Profile
Park Electrochemical Corp. is a global advanced materials company. The Company develops, manufactures, markets and sells digital and radio frequency (RF)/microwave printed circuit materials products principally for the telecommunications and Internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling products for the aerospace markets. The Company operates through integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore. The Company’s foreign operations are conducted principally by the Company’s subsidiaries in Singapore and France.
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