NeoMagic (OTCMKTS:NMGC) & Navitas Semiconductor (NASDAQ:NVTS) Financial Analysis

NeoMagic (OTCMKTS:NMGC) and Navitas Semiconductor (NASDAQ:NVTS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares NeoMagic and Navitas Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoMagic	N/A	N/A	N/A
Navitas Semiconductor	-55.70%	-22.29%	-18.55%

Volatility and Risk

NeoMagic has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for NeoMagic and Navitas Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoMagic	0	0	0	0	N/A
Navitas Semiconductor	0	3	5	0	2.63

Navitas Semiconductor has a consensus target price of $6.00, suggesting a potential upside of 144.90%. Given Navitas Semiconductor’s higher probable upside, analysts clearly believe Navitas Semiconductor is more favorable than NeoMagic.

Insider & Institutional Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. 12.7% of NeoMagic shares are owned by insiders. Comparatively, 31.8% of Navitas Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares NeoMagic and Navitas Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoMagic	N/A	N/A	N/A	N/A	N/A
Navitas Semiconductor	$91.68 million	4.89	-$145.43 million	($0.51)	-4.80

NeoMagic has higher earnings, but lower revenue than Navitas Semiconductor.

Summary

Navitas Semiconductor beats NeoMagic on 6 of the 9 factors compared between the two stocks.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company's products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.