NVE (NVEC) & Its Peers Financial Review

NVE (NASDAQ:NVEC) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its rivals? We will compare NVE to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, dividends, valuation, profitability and earnings.

Profitability

This table compares NVE and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVE	58.15%	30.52%	29.51%
NVE Competitors	-1,279.15%	-126.37%	-3.99%

Insider & Institutional Ownership

65.9% of NVE shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 2.1% of NVE shares are owned by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NVE and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	1	0	0	2.00
NVE Competitors	3492	12324	25739	993	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 59.38%. Given NVE’s rivals stronger consensus rating and higher possible upside, analysts plainly believe NVE has less favorable growth aspects than its rivals.

Dividends

NVE pays an annual dividend of $4.00 per share and has a dividend yield of 5.5%. NVE pays out 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 1.0% and pay out 29.1% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares NVE and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NVE	$26.33 million	$15.20 million	19.58
NVE Competitors	$39.42 billion	$2.48 billion	10.41

NVE’s rivals have higher revenue and earnings than NVE. NVE is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

NVE has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, NVE’s rivals have a beta of 2.80, suggesting that their average stock price is 180% more volatile than the S&P 500.

Summary

NVE rivals beat NVE on 9 of the 15 factors compared.

NVE Company Profile

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.