Comparing NVE (NASDAQ:NVEC) and Coda Octopus Group (NASDAQ:CODA)

NVE (NASDAQ:NVEC) and Coda Octopus Group (NASDAQ:CODA) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Volatility & Risk

NVE has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares NVE and Coda Octopus Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVE	57.64%	30.53%	29.54%
Coda Octopus Group	17.66%	8.33%	7.61%

Earnings and Valuation

This table compares NVE and Coda Octopus Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVE	$26.33 million	21.61	$15.20 million	$3.72	31.60
Coda Octopus Group	$26.56 million	4.26	$4.13 million	$0.43	23.35

NVE has higher earnings, but lower revenue than Coda Octopus Group. Coda Octopus Group is trading at a lower price-to-earnings ratio than NVE, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

65.9% of NVE shares are held by institutional investors. Comparatively, 20.1% of Coda Octopus Group shares are held by institutional investors. 2.1% of NVE shares are held by company insiders. Comparatively, 21.8% of Coda Octopus Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for NVE and Coda Octopus Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	0	1	0	3.00
Coda Octopus Group	0	1	2	0	2.67

Coda Octopus Group has a consensus price target of $14.00, indicating a potential upside of 39.44%. Given Coda Octopus Group’s higher possible upside, analysts clearly believe Coda Octopus Group is more favorable than NVE.

Summary

NVE beats Coda Octopus Group on 10 of the 14 factors compared between the two stocks.

About NVE

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.

About Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.