Head-To-Head Survey: NVIDIA (NVDA) & Celestica (CLS)
NVIDIA (NASDAQ: NVDA) and Celestica (NYSE:CLS) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
NVIDIA has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Celestica has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
61.5% of NVIDIA shares are owned by institutional investors. Comparatively, 71.0% of Celestica shares are owned by institutional investors. 5.8% of NVIDIA shares are owned by insiders. Comparatively, 1.0% of Celestica shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares NVIDIA and Celestica’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NVIDIA pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Celestica does not pay a dividend. NVIDIA pays out 13.0% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for NVIDIA and Celestica, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVIDIA currently has a consensus target price of $209.00, suggesting a potential downside of 11.64%. Celestica has a consensus target price of $13.36, suggesting a potential upside of 22.82%. Given Celestica’s higher possible upside, analysts clearly believe Celestica is more favorable than NVIDIA.
Valuation and Earnings
This table compares NVIDIA and Celestica’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVIDIA||$9.71 billion||14.73||$3.05 billion||$4.61||51.31|
|Celestica||$6.11 billion||0.22||$105.00 million||$0.73||14.90|
NVIDIA has higher revenue and earnings than Celestica. Celestica is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
NVIDIA beats Celestica on 13 of the 16 factors compared between the two stocks.
NVIDIA Company Profile
Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.
Celestica Company Profile
Celestica Inc. is a provider of supply chain solutions. The Company operates in electronics manufacturing services business segment. The Company offers a range of services to its customers, including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services. Its products and services serve a range of applications, including servers; storage systems; optical equipment; aerospace and defense electronics; healthcare products and applications; semiconductor equipment, and a range of industrial and alternative energy products, including solar panels and inverters. It designs, manufactures and tests solar panels for the residential, commercial and utility scale markets. It uses technologies in the assembly and testing of its products.
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