Reviewing Astera Labs (ALAB) & The Competition

Astera Labs (NASDAQ:ALAB) is one of 173 public companies in the “Semiconductors & related devices” industry, but how does it compare to its competitors? We will compare Astera Labs to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, valuation, dividends and risk.

Institutional and Insider Ownership

60.5% of Astera Labs shares are owned by institutional investors. Comparatively, 57.2% of shares of all “Semiconductors & related devices” companies are owned by institutional investors. 10.0% of shares of all “Semiconductors & related devices” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Astera Labs and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	1	12	1	3.00
Astera Labs Competitors	2534	10105	19815	706	2.56

Astera Labs presently has a consensus target price of $112.77, suggesting a potential upside of 56.21%. As a group, “Semiconductors & related devices” companies have a potential upside of 621.21%. Given Astera Labs’ competitors higher probable upside, analysts clearly believe Astera Labs has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Astera Labs and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Astera Labs	$396.29 million	-$83.42 million	-41.73
Astera Labs Competitors	$29.59 billion	$592.42 million	56.15

Astera Labs’ competitors have higher revenue and earnings than Astera Labs. Astera Labs is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Astera Labs and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astera Labs	-21.05%	-10.40%	-9.56%
Astera Labs Competitors	-470.17%	-79.71%	-11.21%

Summary

Astera Labs beats its competitors on 7 of the 12 factors compared.

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.