Head-To-Head Review: NVE (NASDAQ:NVEC) vs. SiTime (NASDAQ:SITM)

NVE (NASDAQ:NVEC) and SiTime (NASDAQ:SITM) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares NVE and SiTime”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVE	$25.69 million	12.69	$17.12 million	$3.10	21.75
SiTime	$202.70 million	20.35	-$93.60 million	($4.05)	-43.17

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

Institutional and Insider Ownership

65.9% of NVE shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 1.9% of NVE shares are owned by insiders. Comparatively, 2.3% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for NVE and SiTime, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	0	0	0	0.00
SiTime	1	0	4	0	2.60

SiTime has a consensus price target of $232.00, suggesting a potential upside of 32.69%. Given SiTime’s stronger consensus rating and higher possible upside, analysts plainly believe SiTime is more favorable than NVE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NVE	58.33%	23.21%	22.71%
SiTime	-46.18%	-10.12%	-7.86%

Risk & Volatility

NVE has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, SiTime has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.

Summary

SiTime beats NVE 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 SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.