Head-To-Head Review: Energous (NASDAQ:WATT) vs. NVIDIA (NASDAQ:NVDA)

NVIDIA (NASDAQ:NVDA) and Energous (NASDAQ:WATT) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Earnings and Valuation

This table compares NVIDIA and Energous”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVIDIA	$215.94 billion	25.50	$120.07 billion	$7.91	28.88
Energous	$5.63 million	10.46	-$9.59 million	($2.21)	-4.82

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NVIDIA and Energous, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVIDIA	0	3	50	2	2.98
Energous	1	1	0	0	1.50

NVIDIA presently has a consensus target price of $324.23, suggesting a potential upside of 41.92%. Given NVIDIA’s stronger consensus rating and higher possible upside, equities analysts plainly believe NVIDIA is more favorable than Energous.

Profitability

This table compares NVIDIA and Energous’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVIDIA	63.66%	96.04%	71.00%
Energous	-76.37%	-28.67%	-24.91%

Risk and Volatility

NVIDIA has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500. Comparatively, Energous has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Insider & Institutional Ownership

65.3% of NVIDIA shares are owned by institutional investors. Comparatively, 4.3% of Energous shares are owned by institutional investors. 3.9% of NVIDIA shares are owned by insiders. Comparatively, 0.2% of Energous shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

NVIDIA beats Energous on 15 of the 15 factors compared between the two stocks.

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.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.