Analyzing Bel Fuse (BELFB) and NVE Corporation (NVEC)
Bel Fuse (NASDAQ: BELFB) and NVE Corporation (NASDAQ:NVEC) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitabiliy, institutional ownership, earnings, analyst recommendations and valuation.
This is a breakdown of current recommendations and price targets for Bel Fuse and NVE Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bel Fuse presently has a consensus price target of $39.00, suggesting a potential upside of 42.34%. NVE Corporation has a consensus price target of $79.00, suggesting a potential upside of 3.77%. Given Bel Fuse’s stronger consensus rating and higher possible upside, analysts clearly believe Bel Fuse is more favorable than NVE Corporation.
This table compares Bel Fuse and NVE Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. NVE Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 5.3%. Bel Fuse pays out 9.2% of its earnings in the form of a dividend. NVE Corporation pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares Bel Fuse and NVE Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bel Fuse||$492.64 million||0.67||$49.93 million||$3.03||9.04|
|NVE Corporation||$29.23 million||12.61||$18.97 million||$2.70||28.20|
Bel Fuse has higher revenue and earnings than NVE Corporation. Bel Fuse is trading at a lower price-to-earnings ratio than NVE Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
60.0% of Bel Fuse shares are owned by institutional investors. Comparatively, 71.8% of NVE Corporation shares are owned by institutional investors. 8.8% of Bel Fuse shares are owned by insiders. Comparatively, 2.3% of NVE Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Bel Fuse has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, NVE Corporation has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Bel Fuse Company Profile
Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.
NVE Corporation Company Profile
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store and transmit information. The Company manufactures spintronic products, including sensors and couplers that are used to acquire and transmit data. The Company has also licensed its spintronic magnetoresistive random access memory technology (MRAM). Its parts are found in industrial, scientific, and medical applications. The Company’s products include sensors, couplers and MRAM products. Its sensor products detect the strength or gradient of magnetic fields and are used to determine position or speed. Its spintronic couplers combine a GMR sensor element and an IsoLoop integrated microscopic coil. MRAM uses spintronics to store data. It combines the speed of static random-access memory (SRAM), the density of dynamic random-access memory (DRAM) and the nonvolatility of flash memory. Data is stored in the spin of the electrons in thin metal alloy films.
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