Seek Returns logo

ALAB vs. QXO: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ALAB and QXO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ALAB’s market capitalization stands at 14.97 billion USD, while QXO’s is 12.71 billion USD, indicating their market valuations are broadly comparable.

QXO carries a higher beta at 2.34, indicating it’s more sensitive to market moves, while ALAB (beta: 1.40) exhibits greater stability.

SymbolALABQXO
Company NameAstera Labs, Inc. Common StockQXO Inc
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Application
CEOJitendra MohanBradley S. Jacobs
Price90.8 USD21.98 USD
Market Cap14.97 billion USD12.71 billion USD
Beta1.402.34
ExchangeNASDAQNASDAQ
IPO DateMarch 20, 2024April 17, 2012
ADRNoNo

Historical Performance

This chart compares the performance of ALAB and QXO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ALAB vs. QXO: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ALAB

4.43%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

QXO

0.91%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

QXO’s Return on Equity of 0.91% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.

ALAB vs. QXO: A comparison of their ROE against their respective Semiconductors and Software - Application industry benchmarks.

Return on Invested Capital

ALAB

-4.25%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

QXO

-1.18%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

QXO has a negative Return on Invested Capital of -1.18%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

ALAB vs. QXO: A comparison of their ROIC against their respective Semiconductors and Software - Application industry benchmarks.

Net Profit Margin

ALAB

8.44%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

QXO

65.39%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

QXO’s Net Profit Margin of 65.39% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ALAB vs. QXO: A comparison of their Net Profit Margin against their respective Semiconductors and Software - Application industry benchmarks.

Operating Profit Margin

ALAB

-4.45%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

QXO

-197.54%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

QXO has a negative Operating Profit Margin of -197.54%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ALAB vs. QXO: A comparison of their Operating Margin against their respective Semiconductors and Software - Application industry benchmarks.

Profitability at a Glance

SymbolALABQXO
Return on Equity (TTM)4.43%0.91%
Return on Assets (TTM)3.69%0.72%
Return on Invested Capital (TTM)-4.25%-1.18%
Net Profit Margin (TTM)8.44%65.39%
Operating Profit Margin (TTM)-4.45%-197.54%
Gross Profit Margin (TTM)75.76%40.51%

Financial Strength

Current Ratio

ALAB

13.92

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

QXO

95.23

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

QXO’s Current Ratio of 95.23 is exceptionally high, placing it well outside the typical range for the Software - Application industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

ALAB vs. QXO: A comparison of their Current Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Debt-to-Equity Ratio

ALAB

--

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

Debt-to-Equity Ratio data for ALAB is currently unavailable.

QXO

0.00

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

Falling into the lower quartile for the Software - Application industry, QXO’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ALAB vs. QXO: A comparison of their D/E Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Interest Coverage Ratio

ALAB

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ALAB is currently unavailable.

QXO

-18,419.00

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

QXO has a negative Interest Coverage Ratio of -18,419.00. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

ALAB vs. QXO: A comparison of their Interest Coverage against their respective Semiconductors and Software - Application industry benchmarks.

Financial Strength at a Glance

SymbolALABQXO
Current Ratio (TTM)13.9295.23
Quick Ratio (TTM)13.2695.23
Debt-to-Equity Ratio (TTM)--0.00
Debt-to-Asset Ratio (TTM)--0.00
Net Debt-to-EBITDA Ratio (TTM)4.76-73.63
Interest Coverage Ratio (TTM)---18419.00

Growth

The following charts compare key year-over-year (YoY) growth metrics for ALAB and QXO. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ALAB vs. QXO: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ALAB vs. QXO: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ALAB vs. QXO: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ALAB

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

QXO

0.00%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

QXO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ALAB vs. QXO: A comparison of their Dividend Yield against their respective Semiconductors and Software - Application industry benchmarks.

Dividend Payout Ratio

ALAB

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

QXO

197.21%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

QXO’s Dividend Payout Ratio of 197.21% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

ALAB vs. QXO: A comparison of their Payout Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Dividend at a Glance

SymbolALABQXO
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%197.21%

Valuation

Price-to-Earnings Ratio

ALAB

357.98

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

QXO

271.22

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

At 271.22, QXO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software - Application industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ALAB vs. QXO: A comparison of their P/E Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Forward P/E to Growth Ratio

ALAB

10.80

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

QXO

246.79

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

QXO’s Forward PEG Ratio of 246.79 is exceptionally high for the Software - Application industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

ALAB vs. QXO: A comparison of their Forward PEG Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Price-to-Sales Ratio

ALAB

30.53

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

QXO

227.19

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

With a P/S Ratio of 227.19, QXO trades at a valuation that eclipses even the highest in the Software - Application industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ALAB vs. QXO: A comparison of their P/S Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Price-to-Book Ratio

ALAB

14.23

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

QXO

1.96

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

ALAB vs. QXO: A comparison of their P/B Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Valuation at a Glance

SymbolALABQXO
Price-to-Earnings Ratio (P/E, TTM)357.98271.22
Forward PEG Ratio (TTM)10.80246.79
Price-to-Sales Ratio (P/S, TTM)30.53227.19
Price-to-Book Ratio (P/B, TTM)14.231.96
Price-to-Free Cash Flow Ratio (P/FCF, TTM)138.44105.76
EV-to-EBITDA (TTM)-820.32110.55
EV-to-Sales (TTM)30.35136.37