Analog Devices (NASDAQ:ADI) & NVE (NASDAQ:NVEC) Head to Head Analysis

NVE (NASDAQ:NVECGet Free Report) and Analog Devices (NASDAQ:ADIGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares NVE and Analog Devices’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVE 60.66% 32.31% 31.60%
Analog Devices 26.94% 14.18% 10.32%

Volatility & Risk

NVE has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Analog Devices has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Dividends

NVE pays an annual dividend of $4.00 per share and has a dividend yield of 5.0%. Analog Devices pays an annual dividend of $3.44 per share and has a dividend yield of 1.8%. 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. Analog Devices pays out 52.6% of its earnings in the form of a dividend. Analog Devices has raised its dividend for 21 consecutive years.

Earnings and Valuation

This table compares NVE and Analog Devices’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NVE $38.25 million 10.11 $22.69 million $4.46 17.95
Analog Devices $12.31 billion 7.74 $3.31 billion $6.54 29.36

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

Insider and Institutional Ownership

64.1% of NVE shares are held by institutional investors. Comparatively, 85.6% of Analog Devices shares are held by institutional investors. 2.0% of NVE shares are held by company insiders. Comparatively, 0.3% of Analog Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for NVE and Analog Devices, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVE 0 0 0 0 N/A
Analog Devices 0 6 17 0 2.74

Analog Devices has a consensus price target of $206.56, indicating a potential upside of 7.58%. Given Analog Devices’ higher probable upside, analysts clearly believe Analog Devices is more favorable than NVE.

Summary

Analog Devices beats NVE on 10 of the 16 factors compared between the two stocks.

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.

About Analog Devices

(Get Free Report)

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. It also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, the company provides digital signal processing and system products for numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

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