Everspin Technologies (NASDAQ:MRAM) and DSP Group (NASDAQ:DSPG) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Earnings & Valuation
This table compares Everspin Technologies and DSP Group's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Everspin Technologies | $37.50 million | 2.79 | $-14,670,000.00 | ($0.80) | -6.80 |
DSP Group | $117.61 million | 2.99 | $-1,190,000.00 | $0.29 | 50.07 |
DSP Group has higher revenue and earnings than Everspin Technologies. Everspin Technologies is trading at a lower price-to-earnings ratio than DSP Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
26.7% of Everspin Technologies shares are held by institutional investors. Comparatively, 85.0% of DSP Group shares are held by institutional investors. 23.6% of Everspin Technologies shares are held by company insiders. Comparatively, 8.1% of DSP Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Everspin Technologies and DSP Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Everspin Technologies | 0 | 0 | 1 | 0 | 3.00 |
DSP Group | 0 | 0 | 5 | 0 | 3.00 |
Everspin Technologies currently has a consensus price target of $10.00, suggesting a potential upside of 83.82%. DSP Group has a consensus price target of $21.75, suggesting a potential upside of 50.10%. Given Everspin Technologies' higher possible upside, equities analysts plainly believe Everspin Technologies is more favorable than DSP Group.
Volatility & Risk
Everspin Technologies has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, DSP Group has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Profitability
This table compares Everspin Technologies and DSP Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Everspin Technologies | -24.00% | -44.04% | -24.46% |
DSP Group | -4.93% | 2.30% | 1.70% |
Summary
DSP Group beats Everspin Technologies on 9 of the 13 factors compared between the two stocks.