GlobalFoundries (NASDAQ:GFS) versus Astera Labs (NASDAQ:ALAB) Critical Contrast

Astera Labs (NASDAQ:ALAB) and GlobalFoundries (NASDAQ:GFS) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Insider & Institutional Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$305.71 million	69.85	-$26.26 million	N/A	N/A
GlobalFoundries	$6.77 billion	3.46	$1.02 billion	$1.34	31.70

GlobalFoundries has higher revenue and earnings than Astera Labs.

Analyst Recommendations

This is a breakdown of current ratings for Astera Labs and GlobalFoundries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	1	11	0	2.92
GlobalFoundries	0	9	6	0	2.40

Astera Labs currently has a consensus target price of $101.58, indicating a potential downside of 24.55%. GlobalFoundries has a consensus target price of $50.21, indicating a potential upside of 18.21%. Given GlobalFoundries’ higher possible upside, analysts plainly believe GlobalFoundries is more favorable than Astera Labs.

Profitability

This table compares Astera Labs and GlobalFoundries’ 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%
GlobalFoundries	10.95%	6.87%	4.29%

Summary

GlobalFoundries beats Astera Labs on 6 of the 10 factors compared between the two stocks.

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 GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.