Head-To-Head Analysis: Lattice Semiconductor (NASDAQ:LSCC) and NVE (NASDAQ:NVEC)

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

Volatility and Risk

Lattice Semiconductor has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, NVE has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lattice Semiconductor and NVE’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lattice Semiconductor	$737.15 million	11.49	$259.06 million	$1.56	39.49
NVE	$29.80 million	11.77	$17.12 million	$3.55	20.46

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

Profitability

This table compares Lattice Semiconductor and NVE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lattice Semiconductor	31.42%	28.61%	23.07%
NVE	57.46%	25.83%	25.35%

Analyst Ratings

This is a breakdown of current ratings and price targets for Lattice Semiconductor and NVE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lattice Semiconductor	0	2	9	0	2.82
NVE	0	0	0	0	N/A

Lattice Semiconductor presently has a consensus price target of $82.09, suggesting a potential upside of 33.26%. Given Lattice Semiconductor’s higher possible upside, analysts clearly believe Lattice Semiconductor is more favorable than NVE.

Institutional and Insider Ownership

98.1% of Lattice Semiconductor shares are owned by institutional investors. Comparatively, 66.0% of NVE shares are owned by institutional investors. 1.2% of Lattice Semiconductor shares are owned by company insiders. Comparatively, 1.9% of NVE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Lattice Semiconductor beats NVE on 8 of the 13 factors compared between the two stocks.

About Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Lattice Certus and ECP, Mach, iCE, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial, and automotive markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.

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.