Ceva (NASDAQ:CEVA) & Everspin Tech (NASDAQ:MRAM) Critical Analysis

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

Institutional and Insider Ownership

44.7% of Everspin Tech shares are owned by institutional investors. Comparatively, 85.4% of Ceva shares are owned by institutional investors. 6.3% of Everspin Tech shares are owned by insiders. Comparatively, 3.1% of Ceva shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Everspin Tech has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, Ceva has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Everspin Tech and Ceva, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everspin Tech	1	0	2	0	2.33
Ceva	1	1	9	1	2.83

Everspin Tech presently has a consensus price target of $22.00, suggesting a potential upside of 87.39%. Ceva has a consensus price target of $38.80, suggesting a potential upside of 43.17%. Given Everspin Tech’s higher possible upside, equities analysts plainly believe Everspin Tech is more favorable than Ceva.

Earnings & Valuation

This table compares Everspin Tech and Ceva”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Tech	$55.20 million	5.18	-$590,000.00	($0.40)	-29.35
Ceva	$109.60 million	6.96	-$10.64 million	($0.40)	-67.75

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

Profitability

This table compares Everspin Tech and Ceva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everspin Tech	-14.28%	9.67%	7.98%
Ceva	-9.48%	-3.15%	-2.74%

About Everspin Tech

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers 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.

About Ceva

CEVA, Inc. provides silicon and software IP solutions to semiconductor and original equipment manufacturer (OEM) companies worldwide. Its 5G mobile and infrastructure products include Ceva-XC vector digital signal processors (DSPs) for 5G handsets, 5G RAN, and general-purpose baseband processing; PentaG-RAN, an open ran platform for base station and radio; and PentaG2 – 5G NR modem platform for UE, as well as for non-handset 5G vertical markets, such as fixed wireless access, industry 4.0, robotics, and AR/VR devices. The company’s wireless IoT products comprise RivieraWaves’ Bluetooth 5dual mode and low energy platforms, RivieraWaves’ Wi-Fi platforms, ultra-wide band platforms, and Cellular IoT and RedCap platforms, as well as sense and inference processors and platforms consist of NeuPro-M neural processing unit (NPU) family; SensPro2 sensor hub AI platforms addressing imaging, vision, powertrain, and applications, including DSP processors, AI accelerators, and a software portfolio; and Ceva-BX1 and Ceva-BX2 audio AI DSPs. Its sensing and audio software comprise RealSpace spatial audio software package; WhisPro speech recognition; ClearVox, a voice front-end software package for voice-enabled devices; and CDNN, a neural network graph compiler that enables AI developers to automatically compile, optimize, and run pre-trained networks onto embedded devices. The company’s application software IP are licensed primarily to OEMs who embed it in their system on chip designs. It delivers AI DSPs and NPUs in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools, which facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. CEVA, Inc. was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. The company was incorporated in 1999 and is headquartered in Rockville, Maryland.