Critical Comparison: STMicroelectronics (NYSE:STM) and Meta Materials (NASDAQ:MMAT)

STMicroelectronics (NYSE:STM) and Meta Materials (NASDAQ:MMAT) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Earnings and Valuation

This table compares STMicroelectronics and Meta Materials’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STMicroelectronics	$17.29 billion	2.10	$4.21 billion	$4.46	9.04
Meta Materials	$7.97 million	2.15	-$398.23 million	($76.00)	-0.04

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

Insider and Institutional Ownership

5.1% of STMicroelectronics shares are held by institutional investors. Comparatively, 6.5% of Meta Materials shares are held by institutional investors. 0.4% of Meta Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares STMicroelectronics and Meta Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
STMicroelectronics	24.36%	27.70%	18.69%
Meta Materials	-4,999.15%	-82.48%	-68.53%

Analyst Recommendations

This is a summary of recent recommendations for STMicroelectronics and Meta Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STMicroelectronics	0	2	6	0	2.75
Meta Materials	0	0	0	0	N/A

STMicroelectronics presently has a consensus price target of $50.75, indicating a potential upside of 25.93%. Given STMicroelectronics’ higher probable upside, equities analysts plainly believe STMicroelectronics is more favorable than Meta Materials.

Volatility and Risk

STMicroelectronics has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Meta Materials has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Summary

STMicroelectronics beats Meta Materials on 10 of the 13 factors compared between the two stocks.

About STMicroelectronics

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.

About Meta Materials

Meta Materials Inc., a smart materials and photonics company, develops, manufactures, and sells various functional materials and nanocomposites. The company products include metaAIR, a laser glare protection eyewear; NANOWEB, a transparent conductive film; holoOPTIX, a holographic optical element; glucoWISE, a non-invasive glucose measurement device; and metaSURFACE, which allows an enhancement in signal to noise ratio of up to 40 times for magnetic resonance imaging scans. It also develops and produces nano-optic structures and color-shifting foils that are used in authentication and brand protection applications in various markets, including banknotes, secure government documents, and commercial branding. In addition, the company develops NPORE, a ceramic nanoporous membrane separator for lithium-ion batteries. Its customers are OEM providers in various industries, including aerospace, automotive, consumer electronics, communications, energy, banknote and brand security, and medical devices. The company was formerly known as Torchlight Energy Resources, Inc. and changed its name to Meta Materials Inc. in June 2021. Meta Materials Inc. was incorporated in 2011 and is headquartered in Dartmouth, Canada.