Astera Labs (NASDAQ:ALAB – Get Free Report) and United Microelectronics (NYSE:UMC – Get Free Report) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Institutional & Insider Ownership
60.5% of Astera Labs shares are held by institutional investors. Comparatively, 5.1% of United Microelectronics shares are held by institutional investors. 8.0% of United Microelectronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Astera Labs and United Microelectronics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astera Labs | $305.71 million | 53.59 | -$26.26 million | N/A | N/A |
| United Microelectronics | $7.09 billion | 2.15 | $1.44 billion | $0.58 | 10.50 |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Astera Labs and United Microelectronics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astera Labs | 0 | 1 | 11 | 1 | 3.00 |
| United Microelectronics | 1 | 3 | 0 | 0 | 1.75 |
Astera Labs currently has a consensus target price of $107.42, suggesting a potential upside of 4.00%. United Microelectronics has a consensus target price of $7.40, suggesting a potential upside of 21.51%. Given United Microelectronics’ higher probable upside, analysts plainly believe United Microelectronics is more favorable than Astera Labs.
Profitability
This table compares Astera Labs and United Microelectronics’ 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% |
| United Microelectronics | 20.35% | 12.78% | 8.16% |
Summary
United Microelectronics beats Astera Labs on 7 of the 12 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 United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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