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 investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
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% |
Valuation and Earnings
This table compares Astera Labs and United Microelectronics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astera Labs | $396.29 million | 35.16 | -$26.26 million | ($1.73) | -50.78 |
| United Microelectronics | $7.09 billion | 2.22 | $1.44 billion | $0.58 | 10.80 |
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 insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for Astera Labs and United Microelectronics, as provided 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 presently has a consensus target price of $115.33, indicating a potential upside of 31.28%. United Microelectronics has a consensus target price of $7.40, indicating a potential upside of 18.12%. Given Astera Labs’ stronger consensus rating and higher probable upside, equities analysts clearly believe Astera Labs is more favorable than United Microelectronics.
Summary
United Microelectronics beats Astera Labs on 8 of the 14 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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