NVE (NVEC) and The Competition Head-To-Head Survey

NVE (NASDAQ:NVEC) 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 NVE to related companies based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.

Risk and Volatility

NVE has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, NVE’s competitors have a beta of 3.10, suggesting that their average share price is 210% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for NVE and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	1	0	0	2.00
NVE Competitors	3487	12297	25676	990	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 43.42%. Given NVE’s competitors stronger consensus rating and higher possible upside, analysts plainly believe NVE has less favorable growth aspects than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
NVE	$30.75 million	$15.20 million	20.75
NVE Competitors	$1,259.14 billion	$2.48 billion	8.00

NVE’s competitors have higher revenue and earnings than NVE. NVE 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

NVE pays an annual dividend of $4.00 per share and has a dividend yield of 5.2%. NVE pays out 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 1.0% and pay out 30.0% of their earnings in the form of a dividend.

Institutional and Insider Ownership

65.9% of NVE shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 2.1% of NVE shares are owned by company insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NVE	58.15%	30.52%	29.51%
NVE Competitors	-1,280.74%	-126.55%	-4.15%

Summary

NVE competitors beat NVE on 9 of the 15 factors compared.

NVE Company Profile

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.