Financial Review: Qorvo (NASDAQ:QRVO) and Astera Labs (NASDAQ:ALAB)

Astera Labs (NASDAQ:ALAB) and Qorvo (NASDAQ:QRVO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Earnings and Valuation

This table compares Astera Labs and Qorvo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$115.79 million	127.76	-$26.26 million	N/A	N/A
Qorvo	$3.77 billion	1.93	-$70.32 million	$0.28	278.43

Astera Labs has higher earnings, but lower revenue than Qorvo.

Analyst Recommendations

This is a summary of recent ratings and price targets for Astera Labs and Qorvo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	1	11	1	3.00
Qorvo	3	12	4	0	2.05

Astera Labs currently has a consensus price target of $115.33, indicating a potential upside of 23.66%. Qorvo has a consensus price target of $95.84, indicating a potential upside of 22.94%. Given Astera Labs’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Astera Labs is more favorable than Qorvo.

Profitability

This table compares Astera Labs and Qorvo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astera Labs	-30.69%	-15.57%	-12.87%
Qorvo	0.71%	12.41%	6.74%

Insider & Institutional Ownership

60.5% of Astera Labs shares are owned by institutional investors. Comparatively, 88.6% of Qorvo shares are owned by institutional investors. 0.5% of Qorvo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.

About Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.