Navitas Semiconductor (NASDAQ:NVTS) versus NVE (NASDAQ:NVEC) Financial Analysis

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

Profitability

This table compares Navitas Semiconductor and NVE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-330.67%	-14.30%	-12.47%
NVE	57.72%	25.62%	24.78%

Analyst Ratings

This is a summary of current recommendations for Navitas Semiconductor and NVE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	2	4	2	0	2.00
NVE	0	1	0	0	2.00

Navitas Semiconductor currently has a consensus target price of $14.74, indicating a potential downside of 16.72%. Given Navitas Semiconductor’s higher possible upside, analysts plainly believe Navitas Semiconductor is more favorable than NVE.

Institutional & Insider Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. Comparatively, 66.0% of NVE shares are owned by institutional investors. 12.4% of Navitas Semiconductor shares are owned by company insiders. Comparatively, 1.9% of NVE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Navitas Semiconductor and NVE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$45.92 million	90.08	-$116.95 million	($0.63)	-28.10
NVE	$26.33 million	17.34	$15.20 million	$3.14	30.04

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

Volatility and Risk

Navitas Semiconductor has a beta of 3.75, indicating that its stock price is 275% more volatile than the S&P 500. Comparatively, NVE has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Summary

NVE beats Navitas Semiconductor on 7 of the 13 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.