Reviewing indie Semiconductor (NASDAQ:INDI) & Coda Octopus Group (NASDAQ:CODA)

indie Semiconductor (NASDAQ:INDI) and Coda Octopus Group (NASDAQ:CODA) 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 dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

67.7% of indie Semiconductor shares are held by institutional investors. Comparatively, 20.1% of Coda Octopus Group shares are held by institutional investors. 2.6% of indie Semiconductor shares are held by company insiders. Comparatively, 21.8% of Coda Octopus Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

indie Semiconductor has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares indie Semiconductor and Coda Octopus Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-69.76%	-29.85%	-13.40%
Coda Octopus Group	17.66%	8.33%	7.61%

Analyst Ratings

This is a breakdown of current ratings for indie Semiconductor and Coda Octopus Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	1	2	1	0	2.00
Coda Octopus Group	0	1	2	0	2.67

indie Semiconductor currently has a consensus price target of $5.58, suggesting a potential upside of 25.05%. Coda Octopus Group has a consensus price target of $14.00, suggesting a potential upside of 43.30%. Given Coda Octopus Group’s stronger consensus rating and higher probable upside, analysts plainly believe Coda Octopus Group is more favorable than indie Semiconductor.

Valuation & Earnings

This table compares indie Semiconductor and Coda Octopus Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$217.39 million	4.66	-$143.07 million	($0.76)	-5.88
Coda Octopus Group	$26.56 million	4.15	$4.13 million	$0.43	22.72

Coda Octopus Group has lower revenue, but higher earnings than indie Semiconductor. indie Semiconductor is trading at a lower price-to-earnings ratio than Coda Octopus Group, indicating that it is currently the more affordable of the two stocks.

Summary

Coda Octopus Group beats indie Semiconductor on 10 of the 14 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.

About Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.