SmartKem (NASDAQ:SMTK) & Ceva (NASDAQ:CEVA) Head to Head Analysis

SmartKem (NASDAQ:SMTK) and Ceva (NASDAQ:CEVA) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Earnings and Valuation

This table compares SmartKem and Ceva”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartKem	$700,000.00	8.43	-$10.51 million	($2.30)	-0.12
Ceva	$109.60 million	11.64	-$10.64 million	($0.45)	-101.78

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

Volatility and Risk

SmartKem has a beta of 3.73, suggesting that its share price is 273% more volatile than the S&P 500. Comparatively, Ceva has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for SmartKem and Ceva, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartKem	1	0	0	0	1.00
Ceva	1	1	9	0	2.73

Ceva has a consensus target price of $41.00, suggesting a potential downside of 10.48%. Given Ceva’s stronger consensus rating and higher probable upside, analysts plainly believe Ceva is more favorable than SmartKem.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SmartKem	-3,997.69%	-610.88%	-249.62%
Ceva	-10.47%	-3.42%	-2.98%

Institutional and Insider Ownership

85.4% of Ceva shares are owned by institutional investors. 3.5% of SmartKem shares are owned by company insiders. Comparatively, 2.8% of Ceva shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Ceva beats SmartKem on 10 of the 14 factors compared between the two stocks.

About SmartKem

SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.

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.