Reviewing NVE (NASDAQ:NVEC) and Coda Octopus Group (NASDAQ:CODA)

Coda Octopus Group (NASDAQ:CODA) and NVE (NASDAQ:NVEC) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coda Octopus Group	17.66%	8.33%	7.61%
NVE	57.72%	25.62%	24.78%

Risk & Volatility

Coda Octopus Group has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, NVE has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

20.1% of Coda Octopus Group shares are held by institutional investors. Comparatively, 65.9% of NVE shares are held by institutional investors. 21.8% of Coda Octopus Group shares are held by insiders. Comparatively, 2.1% of NVE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Coda Octopus Group and NVE, as provided by MarketBeat.com.

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

Coda Octopus Group presently has a consensus target price of $14.00, suggesting a potential upside of 40.00%. Given Coda Octopus Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Coda Octopus Group is more favorable than NVE.

Earnings & Valuation

This table compares Coda Octopus Group and NVE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coda Octopus Group	$26.56 million	4.25	$4.13 million	$0.43	23.26
NVE	$26.33 million	15.57	$15.20 million	$3.14	26.97

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

Summary

NVE beats Coda Octopus Group on 9 of the 14 factors compared between the two stocks.

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.

About NVE

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the United States and internationally. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position, rotation, or speed for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for power conversion and industrial Internet of Things (IIoT) market; and DC-to-DC convertors for use in power conversion systems and industrial networks for the IIoT. In addition, it undertakes contracts for research and development, and licensing of spintronic magnetoresistive random access memory technology. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.