Analyzing Advantest (OTCMKTS:ATEYY) and NVE (NASDAQ:NVEC)

Advantest (OTCMKTS:ATEYYGet Free Report) and NVE (NASDAQ:NVECGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Advantest and NVE, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantest 0 1 0 0 2.00
NVE 0 0 0 0 N/A

Profitability

This table compares Advantest and NVE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantest 15.67% 20.16% 12.65%
NVE 60.66% 32.31% 31.60%

Dividends

Advantest pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. NVE pays an annual dividend of $4.00 per share and has a dividend yield of 5.0%. Advantest pays out 21.3% of its earnings in the form of a dividend. NVE pays out 89.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Advantest and NVE’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advantest $4.15 billion 7.49 $964.96 million $0.75 56.11
NVE $35.52 million 10.85 $22.69 million $4.46 17.87

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

Volatility and Risk

Advantest has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, NVE has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Advantest shares are owned by institutional investors. Comparatively, 64.1% of NVE shares are owned by institutional investors. 2.0% of NVE 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.

Summary

NVE beats Advantest on 8 of the 13 factors compared between the two stocks.

About Advantest

(Get Free Report)

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics systems in Japan, the United States, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Service and other departments. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Service And Other Departments segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease business, and others. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

About NVE

(Get Free Report)

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the United States and internationally. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position, rotation, or speed for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for power conversion and industrial Internet of Things (IIoT) market; and DC-to-DC convertors for use in power conversion systems and industrial networks for the IIoT. In addition, it undertakes contracts for research and development, and licensing of spintronic magnetoresistive random access memory technology. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

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