Analyzing Intermolecular (IMI) and CEVA (CEVA)

Intermolecular (NASDAQ: IMI) and CEVA (NASDAQ:CEVA) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Valuation and Earnings

This table compares Intermolecular and CEVA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intermolecular $47.30 million 1.44 -$15.43 million ($0.27) -5.07
CEVA $72.65 million 13.96 $13.10 million $0.86 53.66

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

Risk & Volatility

Intermolecular has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, CEVA has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Intermolecular and CEVA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intermolecular -36.38% -34.24% -27.71%
CEVA 21.89% 9.02% 7.98%

Institutional & Insider Ownership

37.6% of Intermolecular shares are held by institutional investors. Comparatively, 86.5% of CEVA shares are held by institutional investors. 45.4% of Intermolecular shares are held by insiders. Comparatively, 3.9% of CEVA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Intermolecular and CEVA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intermolecular 0 1 0 0 2.00
CEVA 0 1 6 0 2.86

CEVA has a consensus price target of $46.50, indicating a potential upside of 0.76%. Given CEVA’s stronger consensus rating and higher probable upside, analysts clearly believe CEVA is more favorable than Intermolecular.

Summary

CEVA beats Intermolecular on 12 of the 14 factors compared between the two stocks.

Intermolecular Company Profile

Intermolecular, Inc. provides thin film solutions. The Company’s high productivity combinatorial (HPC) platform, which consists of its tempus processing tools, its automated characterization methods, and its Informatics analysis software, is purpose-built for research and development (R&D) using combinatorial process systems. It develops technology and Internet protocol (IP) rights focused on materials, processes, integration and device architectures in collaboration with its customers. Its HPC platform consists of tempus HPC processing, automated characterization and informatics and analysis software. The Company offers a series of wet processing tools and dry processing tools. Its informatics software includes workflow management software, analysis and reporting software, security and collaboration management software, and integration services. It caters to semiconductor device, semiconductor materials and equipment and clean energy market companies.

CEVA Company Profile

CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.

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