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AMBA vs EXTR

AMBA
Ambarella, Inc.
BEARISH
Price
$52.29
Market Cap
$2.25B
Sector
Technology
AI Confidence
85%
EXTR
Extreme Networks, Inc.
BEARISH
Price
$16.50
Market Cap
$2.22B
Sector
Technology
AI Confidence
55%

Valuation

P/E Ratio
AMBA
--
EXTR
275.0
Forward P/E
AMBA
48.14
EXTR
12.9
P/B Ratio
AMBA
3.8
EXTR
23.08
P/S Ratio
AMBA
5.76
EXTR
1.82
EV/EBITDA
AMBA
-30.38
EXTR
27.69

Profitability

Gross Margin
AMBA
59.97%
EXTR
61.3%
Operating Margin
AMBA
-17.07%
EXTR
6.43%
Profit Margin
AMBA
-19.42%
EXTR
0.75%
ROE
AMBA
-13.12%
EXTR
12.43%
ROA
AMBA
-6.53%
EXTR
3.38%

Growth

Revenue Growth
AMBA
20.1%
EXTR
13.8%
Earnings Growth
AMBA
--
EXTR
5.5%

Financial Health

Debt/Equity
AMBA
0.02
EXTR
2.21
Current Ratio
AMBA
2.31
EXTR
0.95
Quick Ratio
AMBA
1.98
EXTR
0.66

Dividends

Dividend Yield
AMBA
--
EXTR
--
Payout Ratio
AMBA
0.0%
EXTR
0.0%

AI Verdict

AMBA BEARISH

Ambarella (AMBA) exhibits weak financial health per the Piotroski F-Score of 4/9, indicating a fragile operational foundation despite modest growth. The company trades at a high forward P/E of 48.14 and a price/sales ratio of 5.76, significantly above sector averages, suggesting overvaluation. While revenue growth is strong at 20.1% YoY and earnings surprises have been positive in recent quarters, profitability remains deeply negative with a -19.42% profit margin and negative ROE/ROA. Insider selling activity totaling $6.52M over six months signals bearish sentiment from within the company. The absence of a Graham Number and intrinsic value estimate further limits fundamental valuation clarity.

Strengths
Strong revenue growth of 20.1% YoY
Consistently positive earnings surprises in the last 4 quarters (average +77.78%)
High gross margin of 59.97% indicates pricing power and efficient production
Risks
Piotroski F-Score of 4/9 indicates weak financial health and operational instability
Negative profit margin (-19.42%) and ROE (-13.12%) suggest ongoing profitability challenges
Insider selling of $6.52M in last 6 months reflects bearish internal sentiment
EXTR BEARISH

EXTR shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Company has established market presence
Risks
High valuation with P/E of 275.0
Premium vs Graham Number ($0.98)
Low profit margin of 0.8%

Compare Another Pair

AMBA vs EXTR: Head-to-Head Comparison

This page compares Ambarella, Inc. (AMBA) and Extreme Networks, Inc. (EXTR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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