Head to Head Analysis: NVIDIA (NVDA) versus Inphi (IPHI)

Inphi (NYSE:IPHI) and NVIDIA (NASDAQ:NVDA) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Dividends

NVIDIA pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Inphi does not pay a dividend. NVIDIA pays out 12.8% of its earnings in the form of a dividend. NVIDIA has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current ratings for Inphi and NVIDIA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inphi 2 4 6 0 2.33
NVIDIA 0 8 25 1 2.79

Inphi presently has a consensus price target of $37.38, indicating a potential upside of 13.15%. NVIDIA has a consensus price target of $293.23, indicating a potential upside of 27.95%. Given NVIDIA’s stronger consensus rating and higher possible upside, analysts plainly believe NVIDIA is more favorable than Inphi.

Profitability

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

Net Margins Return on Equity Return on Assets
Inphi -33.36% -3.51% -1.54%
NVIDIA 36.21% 54.18% 36.19%

Earnings and Valuation

This table compares Inphi and NVIDIA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inphi $348.20 million 4.16 -$74.90 million $0.58 56.95
NVIDIA $9.71 billion 14.34 $3.05 billion $4.67 49.07

NVIDIA has higher revenue and earnings than Inphi. NVIDIA is trading at a lower price-to-earnings ratio than Inphi, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Inphi has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Institutional and Insider Ownership

65.8% of NVIDIA shares are held by institutional investors. 3.4% of Inphi shares are held by company insiders. Comparatively, 4.7% of NVIDIA shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

NVIDIA beats Inphi on 16 of the 18 factors compared between the two stocks.

About Inphi

Inphi Corp. engages in the provision of analog and mixed signal semiconductor solutions for the communications and computing markets. It offers analog and mixed signal semiconductor solutions; and semiconductor solutions. Analog and mixed signal semiconductor solutions offers high signal integrity at data speeds while reducing system power consumption. Semiconductor solutions comprises of solutions that address bandwidth bottlenecks in networks; maximize throughput and minimize latency in computing environments; and enable the rollout of next generation communications, datacenter, and computing infrastructures. The company was founded by Loi Nguyen, Gopal Raghavan, Timothy D. Semones, and Ashok Dhawan in November 2000 and is headquartered in Santa Clara, CA.

About NVIDIA

NVIDIA Corporation operates as a visual computing company worldwide. It operates through 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 AI utilizing deep learning, accelerated computing, and general purpose computing; GRID 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 designed to enable branded platforms – DRIVE and SHIELD; DRIVE automotive computers and software stacks, which offer self-driving capabilities; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson TX 2, an AI computing platform for 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. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.

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