Critical Contrast: BE Semiconductor Industries (OTCMKTS:BESIY) and NVE (NASDAQ:NVEC)

NVE (NASDAQ:NVEC) and BE Semiconductor Industries (OTCMKTS:BESIY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Valuation & Earnings

This table compares NVE and BE Semiconductor Industries’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVE	$29.80 million	13.38	$17.12 million	$3.55	23.25
BE Semiconductor Industries	$626.45 million	15.81	$191.66 million	$2.39	57.17

BE Semiconductor Industries has higher revenue and earnings than NVE. NVE is trading at a lower price-to-earnings ratio than BE Semiconductor Industries, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

NVE has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, BE Semiconductor Industries has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.

Dividends

NVE pays an annual dividend of $4.00 per share and has a dividend yield of 4.8%. BE Semiconductor Industries pays an annual dividend of $1.95 per share and has a dividend yield of 1.4%. NVE pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BE Semiconductor Industries pays out 81.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares NVE and BE Semiconductor Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVE	60.60%	25.53%	25.03%
BE Semiconductor Industries	28.56%	38.81%	18.45%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for NVE and BE Semiconductor Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVE	0	0	0	0	N/A
BE Semiconductor Industries	0	1	0	0	2.00

Insider and Institutional Ownership

66.0% of NVE shares are owned by institutional investors. 1.9% of NVE shares are owned by company insiders. Comparatively, 1.6% of BE Semiconductor Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

BE Semiconductor Industries beats NVE on 7 of the 13 factors compared between the two stocks.

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.

About BE Semiconductor Industries

BE Semiconductor Industries N.V. engages in the development, manufacture, marketing, sale, and service of semiconductor assembly equipment for the semiconductor and electronics industries in China, the United States, Malaysia, Ireland, Korea, Taiwan, Thailand, Other Asia Pacific and Europe, and internationally. It operates through three segments: Die Attach, Packaging, and Plating. The company's principal products include die attach equipment, such as single chip, multi-chip, multi module, flip chip, thermal compression bonding, fan out wafer level packaging, hybrid and embedded bridge die bonding, and die sorting systems; and packaging equipment, including conventional, ultra-thin, and wafer level molding, as well as trim and form, and singulation systems. It also provides plating equipment, such as tin, copper, and precious metal and solar plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company's principal brand names include Datacon, Esec, Fico, and Meco. It offers its products primarily to multinational chip manufacturers, assembly subcontractors, and electronics and industrial companies. BE Semiconductor Industries N.V. was incorporated in 1995 and is headquartered in Duiven, the Netherlands.