Comparing Coda Octopus Group (NASDAQ:CODA) and Diodes (NASDAQ:DIOD)

Diodes (NASDAQ:DIOD) and Coda Octopus Group (NASDAQ:CODA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

99.2% of Diodes shares are held by institutional investors. Comparatively, 20.1% of Coda Octopus Group shares are held by institutional investors. 1.9% of Diodes shares are held by company insiders. Comparatively, 21.8% of Coda Octopus Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Diodes and Coda Octopus Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diodes	$1.31 billion	1.95	$44.02 million	$1.38	39.91
Coda Octopus Group	$20.32 million	5.67	$3.65 million	$0.30	34.13

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

Analyst Recommendations

This is a summary of current ratings for Diodes and Coda Octopus Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diodes	1	2	2	1	2.50
Coda Octopus Group	0	1	1	0	2.50

Diodes presently has a consensus target price of $55.33, suggesting a potential upside of 0.46%. Given Diodes’ higher probable upside, research analysts plainly believe Diodes is more favorable than Coda Octopus Group.

Profitability

This table compares Diodes and Coda Octopus Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diodes	4.49%	2.81%	2.21%
Coda Octopus Group	14.09%	6.26%	5.79%

Risk & Volatility

Diodes has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Summary

Diodes beats Coda Octopus Group on 9 of the 14 factors compared between the two stocks.

About Diodes

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.

About Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.