NVIDIA (NASDAQ:NVDA – Get Free Report) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its rivals? We will compare NVIDIA to similar businesses based on the strength of its institutional ownership, risk, earnings, dividends, profitability, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for NVIDIA and its rivals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVIDIA | 0 | 1 | 49 | 5 | 3.07 |
| NVIDIA Competitors | 3484 | 12282 | 25651 | 988 | 2.57 |
NVIDIA currently has a consensus price target of $321.47, suggesting a potential upside of 57.09%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 39.91%. Given NVIDIA’s stronger consensus rating and higher probable upside, analysts plainly believe NVIDIA is more favorable than its rivals.
Valuation & Earnings
This table compares NVIDIA and its rivals top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| NVIDIA | $302.97 billion | $120.07 billion | 25.87 |
| NVIDIA Competitors | $1,257.51 billion | $2.48 billion | 7.92 |
NVIDIA’s rivals have higher revenue, but lower earnings than NVIDIA. NVIDIA is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Dividends
NVIDIA pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. NVIDIA pays out 12.6% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 30.9% of their earnings in the form of a dividend. NVIDIA has increased its dividend for 1 consecutive years.
Risk & Volatility
NVIDIA has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, NVIDIA’s rivals have a beta of 3.10, indicating that their average stock price is 210% more volatile than the S&P 500.
Profitability
This table compares NVIDIA and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVIDIA | 63.66% | 96.04% | 71.00% |
| NVIDIA Competitors | -1,280.57% | -126.39% | -4.01% |
Institutional and Insider Ownership
65.3% of NVIDIA shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 3.9% of NVIDIA shares are owned by company insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
NVIDIA beats its rivals on 11 of the 15 factors compared.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
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