Critical Analysis: NeoMagic (OTCMKTS:NMGC) & WiSA Technologies (NASDAQ:WISA)

NeoMagic (OTCMKTS:NMGC) and WiSA Technologies (NASDAQ:WISA) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings for NeoMagic and WiSA Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoMagic	0	0	0	0	0.00
WiSA Technologies	0	1	1	0	2.50

WiSA Technologies has a consensus price target of $14.00, suggesting a potential upside of 665.03%. Given WiSA Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe WiSA Technologies is more favorable than NeoMagic.

Risk & Volatility

NeoMagic has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, WiSA Technologies has a beta of -0.38, suggesting that its stock price is 138% less volatile than the S&P 500.

Profitability

This table compares NeoMagic and WiSA Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoMagic	N/A	N/A	N/A
WiSA Technologies	-2,930.80%	N/A	-217.45%

Earnings and Valuation

This table compares NeoMagic and WiSA Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoMagic	N/A	N/A	N/A	N/A	N/A
WiSA Technologies	$2.08 million	4.94	-$18.72 million	N/A	N/A

NeoMagic has higher earnings, but lower revenue than WiSA Technologies.

Institutional and Insider Ownership

0.7% of WiSA Technologies shares are held by institutional investors. 12.7% of NeoMagic shares are held by company insiders. Comparatively, 0.1% of WiSA Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

WiSA Technologies beats NeoMagic on 5 of the 9 factors compared between the two stocks.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.

About WiSA Technologies

WiSA Technologies, Inc. develops, manufactures, and sells audio wireless technology for smart devices and next-generation home entertainment systems in the United States and Europe. The company offers wireless modules. It serves primarily to consumer electronics companies. The company was formerly known as Summit Wireless Technologies, Inc. and changed its name to WiSA Technologies Inc. in March 2022. WiSA Technologies, Inc. was incorporated in 2010 and is headquartered in Beaverton, Oregon.