SMART Global Holdings (NASDAQ: SGH) and Everspin Tech (NASDAQ:MRAM) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for SMART Global Holdings and Everspin Tech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SMART Global Holdings 0 0 6 1 3.14
Everspin Tech 0 0 2 1 3.33

SMART Global Holdings presently has a consensus target price of $36.36, indicating a potential upside of 8.79%. Everspin Tech has a consensus target price of $16.67, indicating a potential upside of 103.25%. Given Everspin Tech’s stronger consensus rating and higher possible upside, analysts plainly believe Everspin Tech is more favorable than SMART Global Holdings.

Earnings & Valuation

This table compares SMART Global Holdings and Everspin Tech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
SMART Global Holdings $132.88 million 5.48 -$7.79 million ($0.53) -63.06
Everspin Tech $27.09 million 3.87 -$16.70 million ($1.93) -4.25

SMART Global Holdings has higher revenue and earnings than Everspin Tech. SMART Global Holdings is trading at a lower price-to-earnings ratio than Everspin Tech, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SMART Global Holdings and Everspin Tech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SMART Global Holdings N/A N/A N/A
Everspin Tech -66.90% -108.26% -57.97%

Insider and Institutional Ownership

27.4% of SMART Global Holdings shares are owned by institutional investors. Comparatively, 29.5% of Everspin Tech shares are owned by institutional investors. 32.8% of Everspin Tech shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

SMART Global Holdings beats Everspin Tech on 8 of the 12 factors compared between the two stocks.

About SMART Global Holdings

Smart Global Holdings Inc. is a holding company. The Company through its subsidiaries provides specialty memory solutions. The Company manufactures memory for desktops, notebooks, servers and mobile memory for smartphones. The Company also serves original equipment manufacturer (OEM), customers to develop memory solutions. The Company also provides customized, integrated supply chain services to certain OEM customers to assist them in the management and execution of their procurement processes. The Company offers its products and services under a range of categories including dynamic random-access memory (DRAM) components, DRAM modules, flash components, mobile memory and supply chain services. The Company offers a range of DRAM modules including DIMMs, nonvolatile DIMMs, load reducing DIMMs, registered DIMMs, unbuffered DIMMs, small outline DIMMs, and mini-DIMMs.

About Everspin Tech

Everspin Technologies, Inc. is a United States-based provider of magnetoresistive random-access memory (MRAM) solutions. The Company is engaged in designing, manufacturing and shipping discrete and embedded MRAM and spin-torque MRAM (ST-MRAM) into markets and applications. The Company’s products include 8-bit/16-bit Parallel Interface MRAM, Serial Peripheral Interface (SPI), Quad SPI and Double Data Rate (DDR) 3 dynamic random-access memory (DRAM) Compatible MRAM – Spin Torque Technology. The Company’s MR10Q010 Quad SPI MRAM is a memory solution for applications that store and retrieve data and programs. Its DDR3 DRAM Compatible MRAM – Spin Torque Technology is designed to comply with all DDR3 DRAM features, such as on-device termination (ODT) and internal ZQ calibration. Its family of both parallel asynchronous input/output (I/O) and serial peripheral interface (SPI) products in densities ranging from 256 kilobyte (Kb) to 16 megabyte (Mb) is available in die form.

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