Financial Comparison: NeoMagic (OTCMKTS:NMGC) & Navitas Semiconductor (NASDAQ:NVTS)
by Scott Moore · The Cerbat GemNavitas Semiconductor (NASDAQ:NVTS – Get Free Report) and NeoMagic (OTCMKTS:NMGC – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Navitas Semiconductor has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500. Comparatively, NeoMagic has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.
Profitability
This table compares Navitas Semiconductor and NeoMagic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Navitas Semiconductor | -55.70% | -22.29% | -18.55% |
| NeoMagic | N/A | N/A | N/A |
Earnings and Valuation
This table compares Navitas Semiconductor and NeoMagic”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Navitas Semiconductor | $91.68 million | 4.95 | -$145.43 million | ($0.51) | -4.86 |
| NeoMagic | N/A | N/A | N/A | N/A | N/A |
NeoMagic has lower revenue, but higher earnings than Navitas Semiconductor.
Analyst Ratings
This is a summary of current ratings for Navitas Semiconductor and NeoMagic, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Navitas Semiconductor | 0 | 3 | 5 | 0 | 2.63 |
| NeoMagic | 0 | 0 | 0 | 0 | N/A |
Navitas Semiconductor currently has a consensus price target of $6.00, indicating a potential upside of 141.94%. Given Navitas Semiconductor’s higher probable upside, equities research analysts clearly believe Navitas Semiconductor is more favorable than NeoMagic.
Institutional and Insider Ownership
46.1% of Navitas Semiconductor shares are owned by institutional investors. 31.8% of Navitas Semiconductor shares are owned by insiders. Comparatively, 12.7% of NeoMagic shares are owned by 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
Navitas Semiconductor beats NeoMagic on 6 of the 9 factors compared between the two stocks.
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.
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.