Head to Head Analysis: SemiLEDs (NASDAQ:LEDS) versus e.Digital (OTCMKTS:EDIG)

e.Digital (OTCMKTS:EDIG) and SemiLEDs (NASDAQ:LEDS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for e.Digital and SemiLEDs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.Digital	0	0	0	0	N/A
SemiLEDs	0	0	0	0	N/A

Profitability

This table compares e.Digital and SemiLEDs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.Digital	N/A	N/A	N/A
SemiLEDs	-44.37%	-120.86%	-18.80%

Valuation & Earnings

This table compares e.Digital and SemiLEDs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A
SemiLEDs	$5.31 million	1.59	-$2.69 million	($0.47)	-2.50

e.Digital has higher earnings, but lower revenue than SemiLEDs.

Institutional and Insider Ownership

76.3% of SemiLEDs shares are owned by institutional investors. 2.3% of e.Digital shares are owned by insiders. Comparatively, 40.0% of SemiLEDs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

e.Digital has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, SemiLEDs has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Summary

e.Digital beats SemiLEDs on 5 of the 9 factors compared between the two stocks.

About e.Digital

e.Digital Corporation engages in developing and marketing an intellectual property portfolio of context and interpersonal awareness systems, advanced data security technologies, secure communication technologies, and other technologies. It is involved in licensing and enforcing its Nunchi portfolio of patents related to context and interpersonal awareness systems; microSignet data security technology based on characteristics in semi-conductors; Synap security system, method, and apparatus to solve the issues of encryption key generation and exchange; and other technologies. The company was formerly known as Norris Communications, Inc. and changed its name to e.Digital Corporation in January 1999. e.Digital Corporation was founded in 1988 and is based in San Diego, California.

About SemiLEDs

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.