NVE (NASDAQ:NVEC) and Texas Instruments (NASDAQ:TXN) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Valuation and Earnings
This table compares NVE and Texas Instruments' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
NVE | $25.41 million | 14.14 | $14.53 million | N/A | N/A |
Texas Instruments | $14.38 billion | 11.37 | $5.02 billion | $5.24 | 33.91 |
Texas Instruments has higher revenue and earnings than NVE.
Analyst Ratings
This is a breakdown of current ratings for NVE and Texas Instruments, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
NVE | 0 | 0 | 0 | 0 | N/A |
Texas Instruments | 4 | 10 | 14 | 0 | 2.36 |
Texas Instruments has a consensus price target of $166.5185, indicating a potential downside of 6.28%. Given Texas Instruments' higher probable upside, analysts clearly believe Texas Instruments is more favorable than NVE.
Profitability
This table compares NVE and Texas Instruments' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
NVE | 54.35% | 15.18% | 14.90% |
Texas Instruments | 36.24% | 61.05% | 28.06% |
Risk & Volatility
NVE has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Insider & Institutional Ownership
68.0% of NVE shares are held by institutional investors. Comparatively, 83.1% of Texas Instruments shares are held by institutional investors. 2.3% of NVE shares are held by insiders. Comparatively, 0.7% of Texas Instruments shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
NVE pays an annual dividend of $4.00 per share and has a dividend yield of 5.4%. Texas Instruments pays an annual dividend of $4.08 per share and has a dividend yield of 2.3%. Texas Instruments pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NVE has increased its dividend for 1 consecutive years and Texas Instruments has increased its dividend for 17 consecutive years.
Summary
Texas Instruments beats NVE on 9 of the 15 factors compared between the two stocks.