Reviewing NVIDIA (NVDA) and Its Rivals

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

Insider and Institutional Ownership

65.3% of NVIDIA shares are held by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 3.9% of NVIDIA shares are held by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVIDIA	0	1	48	5	3.07
NVIDIA Competitors	3503	12354	25779	999	2.57

NVIDIA presently has a consensus target price of $318.85, suggesting a potential upside of 70.84%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 54.07%. Given NVIDIA’s stronger consensus rating and higher possible upside, equities analysts clearly believe NVIDIA is more favorable than its rivals.

Earnings & Valuation

This table compares NVIDIA and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NVIDIA	$215.94 billion	$120.07 billion	23.60
NVIDIA Competitors	$7.33 billion	$2.49 billion	8.71

NVIDIA has higher revenue and earnings than its rivals. NVIDIA 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

NVIDIA has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, NVIDIA’s rivals have a beta of 2.74, meaning that their average stock price is 174% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NVIDIA	63.66%	96.04%	71.00%
NVIDIA Competitors	-1,280.35%	-126.32%	-3.97%

Dividends

NVIDIA pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. NVIDIA pays out 12.6% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 1.0% and pay out 28.6% of their earnings in the form of a dividend. NVIDIA has increased its dividend for 1 consecutive years.

Summary

NVIDIA beats its rivals on 12 of the 15 factors compared.

NVIDIA Company Profile

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.