Head-To-Head Review: Navitas Semiconductor (NASDAQ:NVTS) and Veeco Instruments (NASDAQ:VECO)

Veeco Instruments (NASDAQ:VECO) and Navitas Semiconductor (NASDAQ:NVTS) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

98.5% of Veeco Instruments shares are owned by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are owned by institutional investors. 2.7% of Veeco Instruments shares are owned by company insiders. Comparatively, 12.4% of Navitas Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeco Instruments	3.40%	3.52%	2.32%
Navitas Semiconductor	-856.85%	-13.13%	-11.91%

Risk and Volatility

Veeco Instruments has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 3.96, suggesting that its share price is 296% more volatile than the S&P 500.

Valuation and Earnings

This table compares Veeco Instruments and Navitas Semiconductor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeco Instruments	$664.29 million	4.81	$35.39 million	$0.36	145.22
Navitas Semiconductor	$36.53 million	77.04	-$116.95 million	($1.33)	-8.11

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Veeco Instruments and Navitas Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeco Instruments	0	4	2	0	2.33
Navitas Semiconductor	2	2	2	0	2.00

Veeco Instruments currently has a consensus target price of $61.33, suggesting a potential upside of 17.32%. Navitas Semiconductor has a consensus target price of $15.92, suggesting a potential upside of 47.68%. Given Navitas Semiconductor’s higher probable upside, analysts plainly believe Navitas Semiconductor is more favorable than Veeco Instruments.

Summary

Veeco Instruments beats Navitas Semiconductor on 9 of the 13 factors compared between the two stocks.

About Veeco Instruments

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices in the United States, Europe, the Middle East, and Africa, China, Rest of the Asia-Pacific, and internationally. The company offers laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, advanced packaging lithography, atomic layer deposition, and other deposition systems. Its process equipment systems are used in the production of a range of microelectronic components, including logic, dynamic random-access memory, photonics devices, power electronics, radio frequency filters and amplifiers, magnetic heads for hard disk drives, and other semiconductor devices. In addition, the company markets and sells its products to integrated device manufacturers and foundries; outsourced semiconductor assembly and test companies; and hard disk drive and photonics manufacturers, as well as research centers and universities. Veeco Instruments Inc. was founded in 1945 and is headquartered in Plainview, New York.

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.