Silicon Image (NASDAQ: SIMG) and CEVA (NASDAQ:CEVA) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares Silicon Image and CEVA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silicon Image N/A N/A N/A $0.54 13.48
CEVA $72.65 million 14.52 $13.10 million $0.86 55.81

CEVA has higher revenue and earnings than Silicon Image. Silicon Image is trading at a lower price-to-earnings ratio than CEVA, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Silicon Image and CEVA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Image 0 0 0 0 N/A
CEVA 0 1 6 0 2.86

CEVA has a consensus price target of $46.50, indicating a potential downside of 3.13%. Given CEVA’s higher probable upside, analysts plainly believe CEVA is more favorable than Silicon Image.

Institutional & Insider Ownership

86.5% of CEVA shares are owned by institutional investors. 3.9% of CEVA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Silicon Image and CEVA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Image 46.20% 56.01% 42.80%
CEVA 21.89% 9.02% 7.98%

Risk & Volatility

Silicon Image has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, CEVA has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Summary

CEVA beats Silicon Image on 7 of the 11 factors compared between the two stocks.

About Silicon Image

Silicon Image, Inc. is a provider of wired and wireless video, audio and data connectivity solutions for the mobile, consumer electronics and personal computer markets. The Company’s offerings include semiconductors and intellectual property. The Company also offers IP connectivity solutions for applications , such as Digital Rights Management provisioning, software management and remote support. The Company offers products under Mobile, CE, Wireless Fiber, PC, Simplay Labs, LLC and DVDO categories. Its Mobile MHL transmitters convert digital video, audio and data into the MHL format supporting resolutions up to 4K with multi-channel audio over a low pin count, connector agnostic interface. Dual mode port processors featuring MHL and HDMI functionality are designed for CE products. Its 60GHz RF Transceiver products are designed for use in 4G LTE small cells and Metro Wi-Fi and fixed wireless broadband point-to-point links.

About CEVA

CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.

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