NVE (NASDAQ:NVEC – Get Free Report) and Silvaco Group (NASDAQ:SVCO – Get Free Report) 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 earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Risk and Volatility
NVE has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 3.13, meaning that its share price is 213% more volatile than the S&P 500.
Insider & Institutional Ownership
66.0% of NVE shares are owned by institutional investors. 1.9% of NVE shares are owned by insiders. Comparatively, 38.4% of Silvaco Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NVE | $25.88 million | 13.46 | $15.06 million | $3.00 | 23.99 |
| Silvaco Group | $59.68 million | 2.84 | -$39.40 million | ($1.08) | -5.16 |
NVE has higher earnings, but lower revenue than Silvaco Group. Silvaco Group is trading at a lower price-to-earnings ratio than NVE, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NVE and Silvaco Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVE | 57.71% | 23.16% | 22.52% |
| Silvaco Group | -56.53% | -14.47% | -9.44% |
Analyst Ratings
This is a breakdown of current ratings for NVE and Silvaco Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVE | 0 | 1 | 0 | 0 | 2.00 |
| Silvaco Group | 1 | 0 | 4 | 0 | 2.60 |
Silvaco Group has a consensus price target of $11.25, suggesting a potential upside of 101.97%. Given Silvaco Group’s stronger consensus rating and higher probable upside, analysts clearly believe Silvaco Group is more favorable than NVE.
Summary
NVE beats Silvaco Group on 8 of the 14 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 Silvaco Group
Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.
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