NVIDIA (NASDAQ:NVDA – Get Free Report) and SemiLEDs (NASDAQ:LEDS – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Profitability
This table compares NVIDIA and SemiLEDs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVIDIA | 53.40% | 110.60% | 68.60% |
| SemiLEDs | -49.29% | -158.17% | -21.00% |
Analyst Ratings
This is a summary of current ratings and price targets for NVIDIA and SemiLEDs, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVIDIA | 0 | 4 | 39 | 1 | 2.93 |
| SemiLEDs | 0 | 0 | 0 | 0 | N/A |
Valuation & Earnings
This table compares NVIDIA and SemiLEDs’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NVIDIA | $60.92 billion | 50.91 | $29.76 billion | $1.71 | 73.74 |
| SemiLEDs | $5.98 million | 1.43 | -$2.69 million | ($0.56) | -2.12 |
NVIDIA has higher revenue and earnings than SemiLEDs. SemiLEDs is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
65.3% of NVIDIA shares are owned by institutional investors. Comparatively, 76.3% of SemiLEDs shares are owned by institutional investors. 4.2% of NVIDIA shares are owned by company insiders. Comparatively, 40.0% of SemiLEDs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
NVIDIA has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, SemiLEDs has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Summary
NVIDIA beats SemiLEDs on 12 of the 14 factors compared between the two stocks.
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.
About SemiLEDs
SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.
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