Analyzing Ceva (NASDAQ:CEVA) & Analog Devices (NASDAQ:ADI)

Analog Devices (NASDAQ:ADI) and Ceva (NASDAQ:CEVA) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Profitability

This table compares Analog Devices and Ceva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Analog Devices	29.79%	16.39%	11.49%
Ceva	-9.48%	-3.15%	-2.74%

Volatility & Risk

Analog Devices has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Ceva has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Analog Devices and Ceva, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Analog Devices	0	2	26	2	3.00
Ceva	1	1	9	1	2.83

Analog Devices presently has a consensus target price of $457.97, indicating a potential upside of 15.00%. Ceva has a consensus target price of $40.60, indicating a potential upside of 17.75%. Given Ceva’s higher probable upside, analysts plainly believe Ceva is more favorable than Analog Devices.

Earnings & Valuation

This table compares Analog Devices and Ceva”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Analog Devices	$11.02 billion	17.51	$2.27 billion	$8.43	47.24
Ceva	$109.60 million	8.86	-$10.64 million	($0.40)	-86.20

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

Institutional & Insider Ownership

86.8% of Analog Devices shares are held by institutional investors. Comparatively, 85.4% of Ceva shares are held by institutional investors. 0.4% of Analog Devices shares are held by company insiders. Comparatively, 3.1% of Ceva shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Analog Devices beats Ceva on 12 of the 15 factors compared between the two stocks.

About Analog Devices

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. It also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, the company provides digital signal processing and system products for numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

About Ceva

CEVA, Inc. provides silicon and software IP solutions to semiconductor and original equipment manufacturer (OEM) companies worldwide. Its 5G mobile and infrastructure products include Ceva-XC vector digital signal processors (DSPs) for 5G handsets, 5G RAN, and general-purpose baseband processing; PentaG-RAN, an open ran platform for base station and radio; and PentaG2 – 5G NR modem platform for UE, as well as for non-handset 5G vertical markets, such as fixed wireless access, industry 4.0, robotics, and AR/VR devices. The company’s wireless IoT products comprise RivieraWaves’ Bluetooth 5dual mode and low energy platforms, RivieraWaves’ Wi-Fi platforms, ultra-wide band platforms, and Cellular IoT and RedCap platforms, as well as sense and inference processors and platforms consist of NeuPro-M neural processing unit (NPU) family; SensPro2 sensor hub AI platforms addressing imaging, vision, powertrain, and applications, including DSP processors, AI accelerators, and a software portfolio; and Ceva-BX1 and Ceva-BX2 audio AI DSPs. Its sensing and audio software comprise RealSpace spatial audio software package; WhisPro speech recognition; ClearVox, a voice front-end software package for voice-enabled devices; and CDNN, a neural network graph compiler that enables AI developers to automatically compile, optimize, and run pre-trained networks onto embedded devices. The company’s application software IP are licensed primarily to OEMs who embed it in their system on chip designs. It delivers AI DSPs and NPUs in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools, which facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. CEVA, Inc. was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. The company was incorporated in 1999 and is headquartered in Rockville, Maryland.