Head-To-Head Analysis: NVIDIA (NASDAQ:NVDA) & ACM Research (NASDAQ:ACMR)

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

Insider and Institutional Ownership

65.3% of NVIDIA shares are held by institutional investors. Comparatively, 66.7% of ACM Research shares are held by institutional investors. 3.9% of NVIDIA shares are held by company insiders. Comparatively, 24.4% of ACM Research shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NVIDIA	N/A	N/A	N/A
ACM Research	N/A	N/A	N/A

Valuation and Earnings

This table compares NVIDIA and ACM Research”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVIDIA	$302.97 billion	17.34	$190.63 billion	$7.91	27.55
ACM Research	$1.04 billion	3.24	$135.78 million	$2.10	24.75

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NVIDIA and ACM Research, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVIDIA	0	1	49	5	3.07
ACM Research	0	2	4	0	2.67

NVIDIA presently has a consensus target price of $321.47, indicating a potential upside of 47.50%. ACM Research has a consensus target price of $122.75, indicating a potential upside of 136.19%. Given ACM Research’s higher probable upside, analysts plainly believe ACM Research is more favorable than NVIDIA.

Risk and Volatility

NVIDIA has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, ACM Research has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.

Summary

NVIDIA beats ACM Research on 9 of the 12 factors compared between the two stocks.

About NVIDIA

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.

About ACM Research

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the SAPS, TEBO, ULTRA C, ULTRA Fn, Ultra ECP, Ultra ECP map, and Ultra ECP ap trademarks through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.