Comparing Kemet Corporation (KEM) & NVE Corporation (NVEC)
Kemet Corporation (NYSE: KEM) and NVE Corporation (NASDAQ:NVEC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
NVE Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 5.3%. Kemet Corporation does not pay a dividend. NVE Corporation pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Kemet Corporation has a beta of 3.55, suggesting that its stock price is 255% more volatile than the S&P 500. Comparatively, NVE Corporation has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Kemet Corporation and NVE Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kemet Corporation presently has a consensus price target of $18.13, suggesting a potential downside of 9.42%. NVE Corporation has a consensus price target of $79.00, suggesting a potential upside of 4.69%. Given NVE Corporation’s higher possible upside, analysts plainly believe NVE Corporation is more favorable than Kemet Corporation.
Institutional & Insider Ownership
67.3% of Kemet Corporation shares are held by institutional investors. Comparatively, 71.4% of NVE Corporation shares are held by institutional investors. 3.9% of Kemet Corporation shares are held by insiders. Comparatively, 2.3% of NVE Corporation shares are held 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.
This table compares Kemet Corporation and NVE Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Kemet Corporation and NVE Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kemet Corporation||$846.86 million||1.13||$110.10 million||$4.88||4.10|
|NVE Corporation||$29.23 million||12.50||$18.97 million||$2.70||27.95|
Kemet Corporation has higher revenue and earnings than NVE Corporation. Kemet Corporation is trading at a lower price-to-earnings ratio than NVE Corporation, indicating that it is currently the more affordable of the two stocks.
Kemet Corporation beats NVE Corporation on 10 of the 16 factors compared between the two stocks.
Kemet Corporation Company Profile
KEMET Corporation (KEMET) is a manufacturer of passive electronic components. The Company operates in two segments: Solid Capacitors, and Film and Electrolytic. The Solid Capacitors segment primarily produces tantalum, aluminum, polymer and ceramic capacitors. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors. The Film and Electrolytic Business Group produces film, paper and wet aluminum electrolytic capacitors. It also designs and produces EMI Filters. The Company’s product offerings include surface mount, which are attached directly to the circuit board; leaded capacitors, which are attached to the circuit board using lead wires, and chassis-mount and other pin-through-hole board-mount capacitors, which utilize attachment methods, such as screw terminal and snap-in. The Company sells its products to a range of original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) providers.
NVE Corporation Company Profile
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store and transmit information. The Company manufactures spintronic products, including sensors and couplers that are used to acquire and transmit data. The Company has also licensed its spintronic magnetoresistive random access memory technology (MRAM). Its parts are found in industrial, scientific, and medical applications. The Company’s products include sensors, couplers and MRAM products. Its sensor products detect the strength or gradient of magnetic fields and are used to determine position or speed. Its spintronic couplers combine a GMR sensor element and an IsoLoop integrated microscopic coil. MRAM uses spintronics to store data. It combines the speed of static random-access memory (SRAM), the density of dynamic random-access memory (DRAM) and the nonvolatility of flash memory. Data is stored in the spin of the electrons in thin metal alloy films.
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