Reviewing NVIDIA (NVDA) and Resonant (RESN)




NVIDIA (NASDAQ:NVDA) and Resonant (NASDAQ:RESN) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

69.8% of NVIDIA shares are owned by institutional investors. Comparatively, 9.0% of Resonant shares are owned by institutional investors. 4.6% of NVIDIA shares are owned by company insiders. Comparatively, 11.7% of Resonant shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

NVIDIA pays an annual dividend of $0.64 per share and has a dividend yield of 0.4%. Resonant does not pay a dividend. NVIDIA pays out 10.5% of its earnings in the form of a dividend. NVIDIA has increased its dividend for 6 consecutive years.

Volatility and Risk

NVIDIA has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Resonant has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500.

Profitability

This table compares NVIDIA and Resonant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVIDIA 35.35% 41.78% 28.78%
Resonant -4,735.88% -83.42% -76.38%

Valuation and Earnings

This table compares NVIDIA and Resonant’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NVIDIA $11.72 billion 9.34 $4.14 billion $6.07 29.63
Resonant $520,000.00 166.84 -$24.82 million ($0.98) -3.14

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

Analyst Recommendations

This is a summary of recent ratings and target prices for NVIDIA and Resonant, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVIDIA 3 10 25 0 2.58
Resonant 0 0 4 0 3.00

NVIDIA presently has a consensus price target of $202.06, indicating a potential upside of 12.34%. Resonant has a consensus price target of $7.75, indicating a potential upside of 151.62%. Given Resonant’s stronger consensus rating and higher probable upside, analysts plainly believe Resonant is more favorable than NVIDIA.

Summary

NVIDIA beats Resonant on 11 of the 17 factors compared between the two stocks.

NVIDIA Company Profile

NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units. The Tegra Processor segment provides processors that are primarily designed to enable branded platforms – DRIVE and SHIELD; DRIVE AGX automotive computers and software stacks, which offer self-driving capabilities; Clara AGX for intelligent medical instruments; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson AGX, an AI computing platform for robotics and other embedded use. The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. The company was founded in 1993 and is headquartered in Santa Clara, California.

Resonant Company Profile

Resonant Inc., a late-stage development company, engages in the development of filter designs for radio frequency (RF) front-ends used in the mobile device industry in the United States. It uses Infinite Synthesized Networks technology to configure and connect resonators, the building blocks of RF filters. The company develops a series of single-band designs for frequency bands; and multiplexer filter designs for two or more bands to address the carrier aggregation, as well as filter designs to replace various filters and associated componentry for various bands. Resonant Inc. was founded in 2012 and is headquartered in Goleta, California.

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