Everspin Technologies (NASDAQ: CEVA) and CEVA (NASDAQ:CEVA) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Volatility & Risk

Everspin Technologies has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500. Comparatively, CEVA has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares Everspin Technologies and CEVA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everspin Technologies -39.62% -75.89% -40.41%
CEVA 5.87% 2.43% 2.16%

Valuation & Earnings

This table compares Everspin Technologies and CEVA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everspin Technologies $35.94 million 3.72 -$21.10 million ($1.69) -4.68
CEVA $87.51 million 7.17 $17.02 million $0.80 35.63

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

Insider & Institutional Ownership

33.7% of Everspin Technologies shares are held by institutional investors. Comparatively, 86.7% of CEVA shares are held by institutional investors. 24.0% of Everspin Technologies shares are held by insiders. Comparatively, 3.0% of CEVA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Everspin Technologies and CEVA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everspin Technologies 0 0 3 0 3.00
CEVA 0 2 6 0 2.75

Everspin Technologies presently has a consensus price target of $14.00, indicating a potential upside of 76.99%. CEVA has a consensus price target of $38.00, indicating a potential upside of 33.33%. Given Everspin Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Everspin Technologies is more favorable than CEVA.

Summary

CEVA beats Everspin Technologies on 10 of the 14 factors compared between the two stocks.

Everspin Technologies Company Profile

Everspin Technologies, Inc. manufactures and sells magnetoresistive random access memory (MRAM) products to customers in the United States and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, embedded MRAM, magnetic sensor, and aerospace and satellite electronic systems. The company provides its products for applications, including industrial, automotive, transportation, and enterprise storage markets. It serves customers through a direct sales channel and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

CEVA Company Profile

CEVA, Inc. licenses signal processing platforms and artificial intelligence processors for semiconductor companies and original equipment manufacturers (OEMs) serving the mobile, consumer, automotive, industrial, and Internet-of Things (IoT) markets worldwide. The company licenses a family of programmable digital signal processor (DSP) cores and application-specific platforms for imaging, computer vision, deep learning, sound, voice, and audio processing; and long range wireless technologies for LTE/5G baseband processing in IoT, handsets, and infrastructure, as well as short range wireless platforms for Wi-Fi and Bluetooth. Its technologies are licensed in the form of intellectual property (IP), which is used for the design, manufacture, market, and sale of application-specific integrated circuits and application-specific standard products to wireless, consumer electronics, and automotive companies for incorporation into various end products. The company designs and licenses DSP cores in the form of a hardware description language definition; DSP-based platforms for 5G baseband processing in cellular handsets, machine to machine type devices and base stations RAN, wired communications, advanced imaging, computer vision, audio/voice/ sensing, and IoT applications; and development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. Its products are primarily deployed in various markets, such as smartphones, tablets, drones, surveillance cameras, wearables, automotive ADAS, and industrial IoT applications, as well as Bluetooth and Wi-Fi connected consumer and medical products. CEVA, Inc. licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was founded in 1999 and is headquartered in Mountain View, California.

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