Head to Head Contrast: Alpha and Omega Semiconductor (NASDAQ:AOSL) versus NeoMagic (OTCMKTS:NMGC)

NeoMagic (OTCMKTS:NMGC) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares NeoMagic and Alpha and Omega Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoMagic	N/A	N/A	N/A
Alpha and Omega Semiconductor	-15.51%	-4.30%	-3.48%

Risk and Volatility

NeoMagic has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.55, meaning that its stock price is 155% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for NeoMagic and Alpha and Omega Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoMagic	0	0	0	0	0.00
Alpha and Omega Semiconductor	1	3	3	0	2.29

Alpha and Omega Semiconductor has a consensus target price of $40.00, indicating a potential upside of 29.66%. Given Alpha and Omega Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than NeoMagic.

Earnings & Valuation

This table compares NeoMagic and Alpha and Omega Semiconductor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoMagic	N/A	N/A	N/A	N/A	N/A
Alpha and Omega Semiconductor	$696.16 million	1.33	-$96.98 million	($3.56)	-8.67

NeoMagic has higher earnings, but lower revenue than Alpha and Omega Semiconductor.

Institutional & Insider Ownership

79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. 12.7% of NeoMagic shares are held by company insiders. Comparatively, 16.7% of Alpha and Omega Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Alpha and Omega Semiconductor beats NeoMagic on 7 of the 10 factors compared between the two stocks.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, 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 in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, 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, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.