Silicon Image (NASDAQ: SIMG) and CEVA (NASDAQ:CEVA) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Risk & Volatility

Silicon Image has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, CEVA has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Insider and Institutional Ownership

86.5% of CEVA shares are held by institutional investors. 3.9% of CEVA shares are held 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.

Profitability

This table compares Silicon Image and CEVA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Image 46.20% 56.01% 42.80%
CEVA 21.89% 9.02% 7.98%

Valuation and Earnings

This table compares Silicon Image and CEVA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silicon Image N/A N/A N/A $0.54 13.48
CEVA $72.65 million 13.95 $13.10 million $0.85 54.24

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Silicon Image and CEVA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Image 0 0 0 0 N/A
CEVA 0 1 6 0 2.86

CEVA has a consensus target price of $46.50, indicating a potential upside of 0.87%. Given CEVA’s higher possible upside, analysts clearly believe CEVA is more favorable than Silicon Image.

Summary

CEVA beats Silicon Image on 7 of the 11 factors compared between the two stocks.

Silicon Image Company Profile

Silicon Image, Inc. is a provider of wired and wireless video, audio and data connectivity solutions for the mobile, consumer electronics and personal computer markets. The Company’s offerings include semiconductors and intellectual property. The Company also offers IP connectivity solutions for applications , such as Digital Rights Management provisioning, software management and remote support. The Company offers products under Mobile, CE, Wireless Fiber, PC, Simplay Labs, LLC and DVDO categories. Its Mobile MHL transmitters convert digital video, audio and data into the MHL format supporting resolutions up to 4K with multi-channel audio over a low pin count, connector agnostic interface. Dual mode port processors featuring MHL and HDMI functionality are designed for CE products. Its 60GHz RF Transceiver products are designed for use in 4G LTE small cells and Metro Wi-Fi and fixed wireless broadband point-to-point links.

CEVA Company Profile

CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.

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