Financial Contrast: ACM Research (NASDAQ:ACMR) versus NVIDIA (NASDAQ:NVDA)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ACM Research and NVIDIA, as provided by MarketBeat.

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

ACM Research currently has a consensus price target of $122.75, indicating a potential upside of 169.96%. NVIDIA has a consensus price target of $319.45, indicating a potential upside of 56.10%. Given ACM Research’s higher probable upside, analysts plainly believe ACM Research is more favorable than NVIDIA.

Risk & Volatility

ACM Research has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACM Research	$901.31 million	3.26	$94.08 million	$2.10	21.65
NVIDIA	$215.94 billion	22.84	$120.07 billion	$7.91	25.87

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACM Research	14.48%	4.08%	2.80%
NVIDIA	63.66%	96.04%	71.00%

Summary

NVIDIA beats ACM Research on 11 of the 15 factors compared between the two stocks.

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.

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.