Financial Contrast: CEVA (CEVA) and STMicroelectronics (STM)

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

Valuation and Earnings

This table compares CEVA and STMicroelectronics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEVA $77.88 million 7.56 $570,000.00 $0.11 242.64
STMicroelectronics $9.66 billion 1.48 $1.29 billion $1.43 11.14



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

Volatility & Risk

CEVA has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, STMicroelectronics has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Dividends

STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. CEVA does not pay a dividend. STMicroelectronics pays out 14.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

88.1% of CEVA shares are owned by institutional investors. Comparatively, 4.0% of STMicroelectronics shares are owned by institutional investors. 3.0% of CEVA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CEVA and STMicroelectronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEVA 0 1 5 0 2.83
STMicroelectronics 1 5 5 0 2.36

CEVA presently has a consensus target price of $34.17, indicating a potential upside of 28.01%. STMicroelectronics has a consensus target price of $18.25, indicating a potential upside of 14.56%. Given CEVA’s stronger consensus rating and higher probable upside, analysts plainly believe CEVA is more favorable than STMicroelectronics.

Profitability

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

Net Margins Return on Equity Return on Assets
CEVA 0.74% 1.00% 0.89%
STMicroelectronics 13.32% 21.88% 12.63%

Summary

CEVA beats STMicroelectronics on 8 of the 15 factors compared between the two stocks.

CEVA Company Profile

CEVA, Inc. licenses signal processing platforms and artificial intelligence processors for semiconductor companies and original equipment manufacturers (OEMs) serving the mobile, consumer, automotive, industrial, and Internet-of Things (IoT) markets worldwide. The company licenses a family of programmable digital signal processor (DSP) cores and application-specific platforms for imaging, computer vision, deep learning, sound, voice, and audio processing; and long range wireless technologies for LTE/5G baseband processing in IoT, handsets, and infrastructure, as well as short range wireless platforms for Wi-Fi and Bluetooth. Its technologies are licensed in the form of intellectual property (IP), which is used for the design, manufacture, market, and sale of application-specific integrated circuits and application-specific standard products to wireless, consumer electronics, and automotive companies for incorporation into various end products. The company designs and licenses DSP cores in the form of a hardware description language definition; DSP-based platforms for 5G baseband processing in cellular handsets, machine to machine type devices and base stations RAN, wired communications, advanced imaging, computer vision, audio/voice/ sensing, and IoT applications; and development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. Its products are primarily deployed in various markets, such as smartphones, tablets, drones, surveillance cameras, wearables, automotive ADAS, and industrial IoT applications, as well as Bluetooth and Wi-Fi connected consumer and medical products. CEVA, Inc. licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was founded in 1999 and is headquartered in Mountain View, California.

STMicroelectronics Company Profile

STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards. It also provides subsystems, and assembly and other services. The company sells its products through its distributors and retailers, as well as through sales representatives. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.

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