Smart Global (NASDAQ:SGH) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Profitability
This table compares Smart Global and Alpha and Omega Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smart Global | 1.89% | 13.14% | 4.65% |
| Alpha and Omega Semiconductor | 0.10% | 3.52% | 2.10% |
Risk & Volatility
Smart Global has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Smart Global and Alpha and Omega Semiconductor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smart Global | 0 | 1 | 4 | 0 | 2.80 |
| Alpha and Omega Semiconductor | 0 | 0 | 2 | 0 | 3.00 |
Smart Global presently has a consensus price target of $41.80, suggesting a potential upside of 10.73%. Alpha and Omega Semiconductor has a consensus price target of $19.50, suggesting a potential upside of 44.23%. Given Alpha and Omega Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than Smart Global.
Insider & Institutional Ownership
93.0% of Smart Global shares are held by institutional investors. Comparatively, 59.6% of Alpha and Omega Semiconductor shares are held by institutional investors. 4.2% of Smart Global shares are held by company insiders. Comparatively, 21.2% of Alpha and Omega Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Smart Global and Alpha and Omega Semiconductor’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smart Global | $1.21 billion | 0.74 | $51.33 million | $2.56 | 14.75 |
| Alpha and Omega Semiconductor | $450.92 million | 0.74 | $1.86 million | $0.70 | 19.31 |
Smart Global has higher revenue and earnings than Alpha and Omega Semiconductor. Smart Global is trading at a lower price-to-earnings ratio than Alpha and Omega Semiconductor, indicating that it is currently the more affordable of the two stocks.
Summary
Smart Global beats Alpha and Omega Semiconductor on 10 of the 14 factors compared between the two stocks.
About Smart Global
SMART Global Holdings, Inc. designs, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture modules and other products; DRAM modules for desktop, notebook, and server applications, as well as for use in smartphones; and specialty DRAM modules for industrial, communications, and networking applications, as well as develops specialized memory module designs based on original equipment manufacturer (OEM) requirements. It also provides flash memory, USB, and serial advanced technology attachment products primarily for use in communications equipment, printers, servers and storage products, switches, and routers; and aerospace, automotive, and defense industries, as well as industrial applications. In addition, the company provides networking, storage, and compute solutions, as well as HPC software to manage and use on premise and cloud computing clusters. Further, it offers supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging. SMART Global Holdings, Inc. sells its products to OEMs through direct sales force and independent sales representatives in North America, Latin America, Asia, and Europe. The company was formerly known as Saleen Holdings, Inc. and changed its name to SMART Global Holdings, Inc. in August 2014. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Newark, California.
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 worldwide. The company offers power discrete products, such as metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors. Its power discrete products are used in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics cards, 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, ultrabooks, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers a family of EZBuck regulators for use in TVs, set-top boxes, data storage systems, servers, and other embedded systems; and the AONX38168 for server and telecommunication markets. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.
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