ALAB vs. WIT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALAB and WIT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
WIT’s market capitalization of 32.56 billion USD is significantly greater than ALAB’s 14.97 billion USD, highlighting its more substantial market valuation.
ALAB’s beta of 1.40 points to significantly higher volatility compared to WIT (beta: 0.74), suggesting ALAB has greater potential for both gains and losses relative to market movements.
WIT is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ALAB, on the other hand, is a domestic entity.
| Symbol | ALAB | WIT |
|---|---|---|
| Company Name | Astera Labs, Inc. Common Stock | Wipro Limited |
| Country | US | IN |
| Sector | Technology | Technology |
| Industry | Semiconductors | Information Technology Services |
| CEO | Jitendra Mohan | Srinivas Pallia |
| Price | 90.8 USD | 3.11 USD |
| Market Cap | 14.97 billion USD | 32.56 billion USD |
| Beta | 1.40 | 0.74 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 20, 2024 | October 19, 2000 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ALAB and WIT 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.
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.
WIT
16.15%
Information Technology Services Industry
- Max
- 47.24%
- Q3
- 23.27%
- Median
- 12.85%
- Q1
- 2.22%
- Min
- -26.63%
WIT’s Return on Equity of 16.15% is on par with the norm for the Information Technology Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
WIT
10.33%
Information Technology Services Industry
- Max
- 28.29%
- Q3
- 13.19%
- Median
- 7.24%
- Q1
- 0.23%
- Min
- -18.82%
WIT’s Return on Invested Capital of 10.33% is in line with the norm for the Information Technology Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
WIT
14.74%
Information Technology Services Industry
- Max
- 20.47%
- Q3
- 11.62%
- Median
- 5.97%
- Q1
- 1.89%
- Min
- -4.62%
A Net Profit Margin of 14.74% places WIT in the upper quartile for the Information Technology Services industry, signifying strong profitability and more effective cost management than most of its peers.
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.
WIT
16.98%
Information Technology Services Industry
- Max
- 29.42%
- Q3
- 14.75%
- Median
- 8.92%
- Q1
- 2.62%
- Min
- -11.92%
An Operating Profit Margin of 16.98% places WIT in the upper quartile for the Information Technology Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ALAB | WIT |
|---|---|---|
| Return on Equity (TTM) | 4.43% | 16.15% |
| Return on Assets (TTM) | 3.69% | 10.21% |
| Return on Invested Capital (TTM) | -4.25% | 10.33% |
| Net Profit Margin (TTM) | 8.44% | 14.74% |
| Operating Profit Margin (TTM) | -4.45% | 16.98% |
| Gross Profit Margin (TTM) | 75.76% | 30.65% |
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.
WIT
2.71
Information Technology Services Industry
- Max
- 3.41
- Q3
- 2.37
- Median
- 1.58
- Q1
- 1.20
- Min
- 0.00
WIT’s Current Ratio of 2.71 is in the upper quartile for the Information Technology Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
WIT
0.24
Information Technology Services Industry
- Max
- 2.63
- Q3
- 1.16
- Median
- 0.48
- Q1
- 0.09
- Min
- 0.01
WIT’s Debt-to-Equity Ratio of 0.24 is typical for the Information Technology Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
WIT
10.24
Information Technology Services Industry
- Max
- 17.52
- Q3
- 10.04
- Median
- 4.66
- Q1
- 0.80
- Min
- -10.50
WIT’s Interest Coverage Ratio of 10.24 is in the upper quartile for the Information Technology Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ALAB | WIT |
|---|---|---|
| Current Ratio (TTM) | 13.92 | 2.71 |
| Quick Ratio (TTM) | 13.26 | 2.70 |
| Debt-to-Equity Ratio (TTM) | -- | 0.24 |
| Debt-to-Asset Ratio (TTM) | -- | 0.15 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.76 | 0.34 |
| Interest Coverage Ratio (TTM) | -- | 10.24 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALAB and WIT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
WIT
192.62%
Information Technology Services Industry
- Max
- 16.57%
- Q3
- 1.39%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WIT’s Dividend Yield of 192.62% is exceptionally high, placing it well above the typical range for the Information Technology Services industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
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.
WIT
47.77%
Information Technology Services Industry
- Max
- 112.81%
- Q3
- 20.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WIT’s Dividend Payout Ratio of 47.77% is in the upper quartile for the Information Technology Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALAB | WIT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 192.62% |
| Dividend Payout Ratio (TTM) | 0.00% | 47.77% |
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.
WIT
21.51
Information Technology Services Industry
- Max
- 49.12
- Q3
- 36.91
- Median
- 24.84
- Q1
- 15.88
- Min
- 1.55
WIT’s P/E Ratio of 21.51 is within the middle range for the Information Technology Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
WIT
1.97
Information Technology Services Industry
- Max
- 5.35
- Q3
- 3.79
- Median
- 2.23
- Q1
- 1.19
- Min
- 0.03
WIT’s Forward PEG Ratio of 1.97 is within the middle range of its peers in the Information Technology Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
WIT
3.17
Information Technology Services Industry
- Max
- 8.15
- Q3
- 4.17
- Median
- 2.14
- Q1
- 1.00
- Min
- 0.10
WIT’s P/S Ratio of 3.17 aligns with the market consensus for the Information Technology Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
WIT
3.53
Information Technology Services Industry
- Max
- 11.78
- Q3
- 6.14
- Median
- 3.23
- Q1
- 1.97
- Min
- 0.42
The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.
Valuation at a Glance
| Symbol | ALAB | WIT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 357.98 | 21.51 |
| Forward PEG Ratio (TTM) | 10.80 | 1.97 |
| Price-to-Sales Ratio (P/S, TTM) | 30.53 | 3.17 |
| Price-to-Book Ratio (P/B, TTM) | 14.23 | 3.53 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 138.44 | 17.20 |
| EV-to-EBITDA (TTM) | -820.32 | 14.21 |
| EV-to-Sales (TTM) | 30.35 | 3.25 |