NVE Corporation (NASDAQ: NVEC) is one of 32 public companies in the “Electronic Component” industry, but how does it contrast to its peers? We will compare NVE Corporation to related businesses based on the strength of its profitability, analyst recommendations, risk, earnings, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

71.4% of NVE Corporation shares are held by institutional investors. Comparatively, 56.3% of shares of all “Electronic Component” companies are held by institutional investors. 2.3% of NVE Corporation shares are held by company insiders. Comparatively, 9.1% of shares of all “Electronic Component” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for NVE Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVE Corporation 0 1 0 0 2.00
NVE Corporation Competitors 98 348 502 6 2.44

NVE Corporation presently has a consensus price target of $79.00, indicating a potential upside of 6.04%. As a group, “Electronic Component” companies have a potential downside of 2.07%. Given NVE Corporation’s higher possible upside, analysts clearly believe NVE Corporation is more favorable than its peers.

Dividends

NVE Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 5.4%. 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. As a group, “Electronic Component” companies pay a dividend yield of 2.5% and pay out 51.5% of their earnings in the form of a dividend.

Risk and Volatility

NVE Corporation has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, NVE Corporation’s peers have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Earnings & Valuation

This table compares NVE Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
NVE Corporation $29.23 million $18.97 million 27.59
NVE Corporation Competitors $895.26 million $186.21 million 10.31

NVE Corporation’s peers have higher revenue and earnings than NVE Corporation. NVE Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares NVE Corporation and its peers’ 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%
NVE Corporation Competitors 2.04% -1.99% 0.66%

Summary

NVE Corporation beats its peers on 8 of the 15 factors compared.

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.

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