GlobalFoundries (NASDAQ:GFS) & NVE (NASDAQ:NVEC) Head-To-Head Analysis

NVE (NASDAQ:NVEC) and GlobalFoundries (NASDAQ:GFS) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider and Institutional Ownership

65.9% of NVE shares are held by institutional investors. 1.9% of NVE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	0	0	0	0.00
GlobalFoundries	0	7	7	0	2.50

GlobalFoundries has a consensus target price of $49.64, suggesting a potential upside of 46.83%. Given GlobalFoundries’ stronger consensus rating and higher probable upside, analysts plainly believe GlobalFoundries is more favorable than NVE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NVE	58.33%	23.21%	22.71%
GlobalFoundries	-3.93%	6.05%	3.82%

Volatility and Risk

NVE has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Valuation and Earnings

This table compares NVE and GlobalFoundries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVE	$25.69 million	10.49	$17.12 million	$3.10	17.98
GlobalFoundries	$6.75 billion	2.77	-$265.00 million	($0.48)	-70.44

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

Summary

NVE beats GlobalFoundries on 9 of the 14 factors compared between the two stocks.

About NVE

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 GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.