NVIDIA (NVDA) and Its Rivals Financial Review

NVIDIA (NASDAQ:NVDA) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its competitors? We will compare NVIDIA to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Insider and Institutional Ownership

65.3% of NVIDIA shares are held by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 3.9% of NVIDIA shares are held by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for NVIDIA and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVIDIA	0	1	49	5	3.07
NVIDIA Competitors	3484	12282	25651	988	2.57

NVIDIA currently has a consensus price target of $321.47, indicating a potential upside of 57.09%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 39.91%. Given NVIDIA’s stronger consensus rating and higher possible upside, equities research analysts plainly believe NVIDIA is more favorable than its competitors.

Earnings and Valuation

This table compares NVIDIA and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NVIDIA	$302.97 billion	$120.07 billion	25.87
NVIDIA Competitors	$1,257.51 billion	$2.48 billion	7.92

NVIDIA’s competitors have higher revenue, but lower earnings than NVIDIA. NVIDIA is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

NVIDIA pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. NVIDIA pays out 12.6% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 30.9% of their earnings in the form of a dividend. NVIDIA has increased its dividend for 1 consecutive years.

Profitability

This table compares NVIDIA and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVIDIA	63.66%	96.04%	71.00%
NVIDIA Competitors	-1,280.57%	-126.39%	-4.01%

Risk and Volatility

NVIDIA has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, NVIDIA’s competitors have a beta of 3.10, indicating that their average stock price is 210% more volatile than the S&P 500.

Summary

NVIDIA beats its competitors on 11 of the 15 factors compared.

NVIDIA Company Profile

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.