Reviewing NVE (NASDAQ:NVEC) & Cirrus Logic (NASDAQ:CRUS)

NVE (NASDAQ:NVEC) and Cirrus Logic (NASDAQ:CRUS) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider and Institutional Ownership

66.0% of NVE shares are held by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are held by institutional investors. 1.9% of NVE shares are held by insiders. Comparatively, 1.2% of Cirrus Logic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

NVE has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NVE and Cirrus Logic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	1	0	0	2.00
Cirrus Logic	0	3	4	1	2.75

Cirrus Logic has a consensus price target of $150.43, suggesting a potential downside of 5.98%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, analysts plainly believe Cirrus Logic is more favorable than NVE.

Profitability

This table compares NVE and Cirrus Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVE	54.59%	23.47%	22.73%
Cirrus Logic	20.47%	20.41%	17.22%

Earnings and Valuation

This table compares NVE and Cirrus Logic”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVE	$25.88 million	14.33	$15.06 million	$2.92	26.24
Cirrus Logic	$1.90 billion	4.30	$331.51 million	$7.59	21.08

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

Summary

Cirrus Logic beats NVE on 8 of the 15 factors compared between the two stocks.

About NVE

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the United States and internationally. 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, rotation, or speed for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for power conversion and industrial Internet of Things (IIoT) market; and DC-to-DC convertors for use in power conversion systems and industrial networks for the IIoT. In addition, it undertakes contracts for research and development, and licensing of spintronic magnetoresistive random access memory technology. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.