Reviewing BE Semiconductor Industries (OTCMKTS:BESIY) and NVIDIA (NASDAQ:NVDA)

BE Semiconductor Industries (OTCMKTS:BESIY) and NVIDIA (NASDAQ:NVDA) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for BE Semiconductor Industries and NVIDIA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BE Semiconductor Industries 0 3 0 0 2.00
NVIDIA 1 2 27 1 2.90

NVIDIA has a consensus price target of $222.20, suggesting a potential upside of 6.12%. Given NVIDIA’s stronger consensus rating and higher probable upside, analysts clearly believe NVIDIA is more favorable than BE Semiconductor Industries.

Profitability

This table compares BE Semiconductor Industries and NVIDIA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BE Semiconductor Industries 35.72% 50.81% 22.52%
NVIDIA 32.33% 40.88% 23.58%

Insider & Institutional Ownership

16.9% of NVIDIA shares are owned by institutional investors. 1.6% of BE Semiconductor Industries shares are owned by company insiders. Comparatively, 4.5% of NVIDIA shares are owned 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.

Dividends

BE Semiconductor Industries pays an annual dividend of $1.75 per share and has a dividend yield of 2.4%. NVIDIA pays an annual dividend of $0.16 per share and has a dividend yield of 0.1%. NVIDIA pays out 7.8% of its earnings in the form of a dividend.

Volatility and Risk

BE Semiconductor Industries has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares BE Semiconductor Industries and NVIDIA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BE Semiconductor Industries $495.29 million 10.69 $151.10 million N/A N/A
NVIDIA $16.68 billion 31.29 $4.33 billion $2.06 101.65

NVIDIA has higher revenue and earnings than BE Semiconductor Industries.

Summary

NVIDIA beats BE Semiconductor Industries on 11 of the 16 factors compared between the two stocks.

About BE Semiconductor Industries

BE Semiconductor Industries NV engages in the development, manufacturing, marketing, sales, and service of semiconductor assembly equipment for the global semiconductor and electronics industries. Its products and services include machines conversion kits and upgrades; installation, start-up, and training services; spare parts; and extended warranty. The company was founded in May 1995 and is headquartered in Duiven, the Netherlands.

About NVIDIA

NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the following segments: Graphics Processing Unit (GPU), Tegra Processor, and All Other. The GPU segment comprises of product brands, which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices. The All Other segment refers to the stock-based compensation expense, corporate infrastructure and support costs, acquisition-related costs, legal settlement costs, and other non-recurring charges. The company was founded by Jen Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA.

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