Reviewing Navitas Semiconductor (NASDAQ:NVTS) and Nano Labs (NASDAQ:NA)

Nano Labs (NASDAQ:NA) and Navitas Semiconductor (NASDAQ:NVTS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Insider and Institutional Ownership

50.7% of Nano Labs shares are held by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are held by institutional investors. 29.9% of Navitas Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nano Labs and Navitas Semiconductor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano Labs	$5.65 million	26.18	-$15.75 million	N/A	N/A
Navitas Semiconductor	$83.30 million	16.45	-$84.60 million	($0.65)	-9.89

Nano Labs has higher earnings, but lower revenue than Navitas Semiconductor.

Analyst Ratings

This is a summary of current ratings and price targets for Nano Labs and Navitas Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano Labs	0	0	0	0	0.00
Navitas Semiconductor	1	3	3	0	2.29

Navitas Semiconductor has a consensus price target of $5.65, indicating a potential downside of 12.13%. Given Navitas Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe Navitas Semiconductor is more favorable than Nano Labs.

Profitability

This table compares Nano Labs and Navitas Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano Labs	N/A	N/A	N/A
Navitas Semiconductor	-182.63%	-18.16%	-16.26%

Risk & Volatility

Nano Labs has a beta of 3.17, indicating that its stock price is 217% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 3.02, indicating that its stock price is 202% more volatile than the S&P 500.

Summary

Nano Labs beats Navitas Semiconductor on 7 of the 12 factors compared between the two stocks.

About Nano Labs

Nano Labs Ltd operates as a fabless integrated circuit design company and product solution provider in the People's Republic of China and internationally. It develops high throughput computing and high-performance computing chips. The company also offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, it engages in the research and development of software. Its customers include enterprises and individual buyers. The company was founded in 2019 and is headquartered in Hangzhou, the People's Republic of China.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.