NVIDIA (NVDA) versus CEVA (NASDAQ:CEVA) Financial Analysis

NVIDIA (NASDAQ: NVDA) and CEVA (NASDAQ:CEVA) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Dividends

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NVIDIA pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. CEVA does not pay a dividend. NVIDIA pays out 12.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for NVIDIA and CEVA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVIDIA 4 12 21 0 2.46
CEVA 0 1 4 0 2.80

NVIDIA presently has a consensus target price of $213.12, indicating a potential downside of 7.98%. CEVA has a consensus target price of $49.00, indicating a potential upside of 35.36%. Given CEVA’s stronger consensus rating and higher possible upside, analysts clearly believe CEVA is more favorable than NVIDIA.

Volatility & Risk

NVIDIA has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, CEVA has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

66.9% of NVIDIA shares are held by institutional investors. Comparatively, 90.3% of CEVA shares are held by institutional investors. 5.8% of NVIDIA shares are held by insiders. Comparatively, 3.9% of CEVA shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares NVIDIA and CEVA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVIDIA 31.36% 45.02% 29.27%
CEVA 19.46% 7.82% 6.94%

Valuation and Earnings

This table compares NVIDIA and CEVA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NVIDIA $9.71 billion 14.42 $3.05 billion $4.82 48.05
CEVA $87.51 million 9.19 $17.02 million $0.76 47.63

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.

Summary

NVIDIA beats CEVA on 11 of the 16 factors compared between the two stocks.

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.

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.

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