CEVA (NASDAQ: CEVA) and NVIDIA (NASDAQ:NVDA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
90.3% of CEVA shares are owned by institutional investors. Comparatively, 66.9% of NVIDIA shares are owned by institutional investors. 3.9% of CEVA shares are owned by company insiders. Comparatively, 5.2% of NVIDIA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
NVIDIA pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. CEVA does not pay a dividend. NVIDIA pays out 12.4% of its earnings in the form of a dividend.
This table compares CEVA and NVIDIA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares CEVA and NVIDIA’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CEVA||$87.51 million||9.76||$17.02 million||$0.76||50.59|
|NVIDIA||$9.71 billion||15.48||$3.05 billion||$4.82||51.57|
NVIDIA has higher revenue and earnings than CEVA. CEVA is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CEVA has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for CEVA and NVIDIA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CEVA currently has a consensus price target of $47.50, suggesting a potential upside of 23.54%. NVIDIA has a consensus price target of $210.03, suggesting a potential downside of 15.50%. Given CEVA’s stronger consensus rating and higher possible upside, equities analysts clearly believe CEVA is more favorable than NVIDIA.
NVIDIA beats CEVA on 12 of the 16 factors compared between the two stocks.
CEVA Company Profile
CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.
NVIDIA Company Profile
Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.
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