NVE Corporation (NASDAQ: NVEC) and Maxwell Technologies (NASDAQ:MXWL) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares NVE Corporation and Maxwell Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVE Corporation 44.87% 14.02% 13.81%
Maxwell Technologies -34.18% -30.83% -21.80%

Dividends

NVE Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 5.3%. Maxwell Technologies does not pay 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 and Earnings

This table compares NVE Corporation and Maxwell Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NVE Corporation $29.23 million 12.47 $18.97 million $2.70 27.90
Maxwell Technologies $115.70 million 1.79 -$19.60 million ($1.19) -4.71

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

Risk & Volatility

NVE Corporation has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Maxwell Technologies has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Institutional and Insider Ownership

71.4% of NVE Corporation shares are owned by institutional investors. Comparatively, 45.9% of Maxwell Technologies shares are owned by institutional investors. 2.3% of NVE Corporation shares are owned by insiders. Comparatively, 3.5% of Maxwell Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for NVE Corporation and Maxwell Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVE Corporation 0 1 0 0 2.00
Maxwell Technologies 0 4 1 0 2.20

NVE Corporation currently has a consensus price target of $79.00, suggesting a potential upside of 4.89%. Maxwell Technologies has a consensus price target of $6.50, suggesting a potential upside of 16.07%. Given Maxwell Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Maxwell Technologies is more favorable than NVE Corporation.

Summary

NVE Corporation beats Maxwell Technologies on 9 of the 15 factors compared between the two stocks.

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.

Maxwell Technologies Company Profile

Maxwell Technologies, Inc. develops, manufactures and markets energy storage and power delivery products for transportation, industrial, information technology and other applications and microelectronic products for space and satellite applications. The Company offers three product lines: Ultracapacitors, High-Voltage Capacitors and Radiation-Hardened Microelectronic Products. The Company’s ultracapacitor cells and multi-cell packs, and modules provide energy storage and power delivery solutions for applications in multiple industries. The Company offers ultracapacitor cells with capacitances ranging from 1 to 3,400 farads. It designs and manufactures CONDIS high-voltage capacitors. These products include grading and coupling capacitors and electric voltage transformers. The Company’s radiation-hardened microelectronic products for satellites and spacecraft include single board computers and components, such as high-density memory and data conversion modules.

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