NeoMagic (OTCMKTS:NMGC) and NVE (NASDAQ:NVEC) Head-To-Head Analysis

NVE (NASDAQ:NVEC) and NeoMagic (OTCMKTS:NMGC) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for NVE and NeoMagic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	1	0	0	2.00
NeoMagic	0	0	0	0	0.00

Institutional & Insider Ownership

65.9% of NVE shares are held by institutional investors. 2.1% of NVE shares are held by insiders. Comparatively, 12.7% of NeoMagic shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

NVE has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, NeoMagic has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500.

Profitability

This table compares NVE and NeoMagic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVE	57.72%	25.62%	24.78%
NeoMagic	N/A	N/A	N/A

Valuation & Earnings

This table compares NVE and NeoMagic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVE	$26.33 million	16.69	$15.20 million	$3.14	28.91
NeoMagic	N/A	N/A	N/A	N/A	N/A

NVE has higher revenue and earnings than NeoMagic.

Summary

NVE beats NeoMagic on 7 of the 8 factors compared between the two stocks.

About NVE

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.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.