Head to Head Survey: NVIDIA (NVDA) & NVE (NVEC)
NVE (NASDAQ:NVEC) and NVIDIA (NASDAQ:NVDA) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.
NVE pays an annual dividend of $4.00 per share and has a dividend yield of 4.0%. NVIDIA pays an annual dividend of $0.64 per share and has a dividend yield of 0.3%. NVIDIA pays out 10.5% of its earnings in the form of a dividend. NVIDIA has raised its dividend for 6 consecutive years.
76.8% of NVE shares are owned by institutional investors. Comparatively, 69.8% of NVIDIA shares are owned by institutional investors. 2.4% of NVE shares are owned by insiders. Comparatively, 4.6% of NVIDIA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of recent recommendations for NVE and NVIDIA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVIDIA has a consensus price target of $202.06, indicating a potential upside of 5.97%. Given NVIDIA’s higher possible upside, analysts clearly believe NVIDIA is more favorable than NVE.
This table compares NVE and NVIDIA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares NVE and NVIDIA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVE||$29.86 million||16.29||$13.91 million||N/A||N/A|
|NVIDIA||$11.72 billion||9.90||$4.14 billion||$6.07||31.41|
NVIDIA has higher revenue and earnings than NVE.
Risk and Volatility
NVE has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
NVIDIA beats NVE on 9 of the 15 factors compared between the two stocks.
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that utilizes electron spin to acquire, store, and transmit information. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position or speed primarily for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers, such as IL500-series couplers, IL600-series passive-input couplers, IL700/IL200-series high-speed couplers, IL4/IL3-series isolated network couplers, and IL800-series top-of-the-line couplers. In addition, it licenses the spintronic magnetoresistive random access memory technology, as well as conducts contract research and development activities. The company sells its products through distributors in the United States, Europe, the Middle East, Africa, Asia-Pacific, and internationally. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units. The Tegra Processor segment provides processors that are primarily designed to enable branded platforms – DRIVE and SHIELD; DRIVE AGX automotive computers and software stacks, which offer self-driving capabilities; Clara AGX for intelligent medical instruments; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson AGX, an AI computing platform for robotics and other embedded use. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. The company was founded in 1993 and is headquartered in Santa Clara, California.
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