NVE (NASDAQ:NVEC – Get Free Report) and Impinj (NASDAQ:PI – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Risk and Volatility
NVE has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Impinj has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.
Profitability
This table compares NVE and Impinj’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVE | 57.64% | 30.53% | 29.54% |
| Impinj | -7.26% | 5.23% | 2.09% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVE | 0 | 0 | 1 | 0 | 3.00 |
| Impinj | 1 | 3 | 7 | 0 | 2.55 |
Impinj has a consensus price target of $183.30, indicating a potential downside of 3.34%. Given Impinj’s higher possible upside, analysts clearly believe Impinj is more favorable than NVE.
Earnings & Valuation
This table compares NVE and Impinj”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NVE | $26.33 million | 20.92 | $15.20 million | $3.72 | 30.60 |
| Impinj | $361.08 million | 16.04 | -$10.85 million | ($0.92) | -206.12 |
NVE has higher earnings, but lower revenue than Impinj. Impinj is trading at a lower price-to-earnings ratio than NVE, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
65.9% of NVE shares are owned by institutional investors. 2.1% of NVE shares are owned by insiders. Comparatively, 6.8% of Impinj shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
NVE beats Impinj 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 Impinj
Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.
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