Contrasting NVIDIA (NASDAQ:NVDA) & ACM Research (NASDAQ:ACMR)

ACM Research (NASDAQ:ACMR) and NVIDIA (NASDAQ:NVDA) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACM Research	14.48%	4.08%	2.80%
NVIDIA	63.66%	96.04%	71.00%

Volatility and Risk

ACM Research has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500.

Earnings and Valuation

This table compares ACM Research and NVIDIA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACM Research	$901.31 million	3.14	$94.08 million	$2.10	20.82
NVIDIA	$215.94 billion	22.69	$120.07 billion	$7.91	25.70

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

Analyst Ratings

This is a summary of recent ratings for ACM Research and NVIDIA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACM Research	0	2	4	0	2.67
NVIDIA	0	1	48	5	3.07

ACM Research presently has a consensus price target of $122.75, indicating a potential upside of 180.77%. NVIDIA has a consensus price target of $318.85, indicating a potential upside of 56.86%. Given ACM Research’s higher possible upside, equities analysts clearly believe ACM Research is more favorable than NVIDIA.

Insider and Institutional Ownership

66.7% of ACM Research shares are owned by institutional investors. Comparatively, 65.3% of NVIDIA shares are owned by institutional investors. 24.4% of ACM Research shares are owned by insiders. Comparatively, 3.9% of NVIDIA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

NVIDIA beats ACM Research on 11 of the 15 factors compared between the two stocks.

About ACM Research

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the SAPS, TEBO, ULTRA C, ULTRA Fn, Ultra ECP, Ultra ECP map, and Ultra ECP ap trademarks through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.