Analyzing Netlist (NLST) & Veeco Instruments (VECO)
Netlist (NASDAQ: NLST) and Veeco Instruments (NASDAQ:VECO) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
This is a summary of current ratings and target prices for Netlist and Veeco Instruments, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Netlist currently has a consensus target price of $2.23, suggesting a potential upside of 227.99%. Veeco Instruments has a consensus target price of $30.38, suggesting a potential upside of 41.28%. Given Netlist’s stronger consensus rating and higher possible upside, equities analysts plainly believe Netlist is more favorable than Veeco Instruments.
Institutional & Insider Ownership
19.4% of Netlist shares are held by institutional investors. Comparatively, 96.0% of Veeco Instruments shares are held by institutional investors. 12.3% of Netlist shares are held by company insiders. Comparatively, 2.9% of Veeco Instruments shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Netlist and Veeco Instruments’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Netlist||$28.96 million||1.65||-$12.35 million||($0.25)||-2.72|
|Veeco Instruments||$388.54 million||2.68||$4.60 million||($2.31)||-9.31|
Veeco Instruments has higher revenue and earnings than Netlist. Veeco Instruments is trading at a lower price-to-earnings ratio than Netlist, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Netlist has a beta of -0.92, suggesting that its share price is 192% less volatile than the S&P 500. Comparatively, Veeco Instruments has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
This table compares Netlist and Veeco Instruments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Veeco Instruments beats Netlist on 8 of the 13 factors compared between the two stocks.
Netlist, Inc. designs, manufactures and sells a range of memory subsystems for datacenter, data storage and computing markets. The Company operates in the segment of design and manufacture of memory subsystems for the server, computing and communications markets. The Company’s memory subsystems consist of combinations of dynamic random access memory integrated circuits (DRAM ICs or DRAM), NAND flash memory (NAND flash), application-specific integrated circuits (ASICs) and other components assembled on printed circuit boards (PCBs). The Company primarily markets and sells its products to original equipment manufacturer (OEM) customers, hyper scale datacenter operators and data storage vendors. The Company’s products include NVvault, HyperCloud, and specialty memory modules and flash-based products. NVvault is a memory subsystem that incorporates both DRAM and NAND flash in a single persistent dual-in line memory module (DIMM) solution.
About Veeco Instruments
Veeco Instruments Inc. is engaged in the design, development, manufacture and support of thin film process equipment, primarily sold to make electronic devices. The Company’s geographical segments include the United States; China; Europe, Middle East and Africa (EMEA), and Rest of World (ROW). The Company’s portfolio of technology solutions focus on market areas, including Lighting, Display & Power Electronics; Advanced Packaging, micro-electromechanical systems (MEMS) & radio frequency (RF); Scientific & Industrial, and Data Storage. The Company’s equipment is used to make electronic devices, including light emitting diodes (LEDs), MEMS, wireless devices, power electronics, hard disk drives (HDDs) and semiconductor devices. The Company’s System products include Metal Organic Chemical Vapor Deposition Systems, Precision Surface Processing Systems, Ion Beam Etch and Deposition Systems, Molecular Beam Epitaxy Systems, and Other Deposition and Industrial Products.
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