CEVA (NASDAQ:CEVA) versus AXT (AXTI) Head-To-Head Survey

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

Volatility & Risk

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AXT has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, CEVA has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
AXT 10.28% 5.81% 5.14%
CEVA 19.46% 7.82% 6.94%

Analyst Ratings

This is a breakdown of current ratings and target prices for AXT and CEVA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AXT 0 1 3 0 2.75
CEVA 0 1 4 0 2.80

AXT presently has a consensus price target of $10.42, suggesting a potential upside of 49.88%. CEVA has a consensus price target of $49.00, suggesting a potential upside of 39.20%. Given AXT’s higher possible upside, equities analysts plainly believe AXT is more favorable than CEVA.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AXT $98.67 million 2.78 $10.14 million $0.26 26.73
CEVA $87.51 million 8.94 $17.02 million $0.80 44.00

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

Institutional and Insider Ownership

56.1% of AXT shares are owned by institutional investors. Comparatively, 90.3% of CEVA shares are owned by institutional investors. 6.9% of AXT shares are owned by insiders. Comparatively, 3.9% of CEVA shares are owned by 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

CEVA beats AXT on 10 of the 14 factors compared between the two stocks.

AXT Company Profile

AXT, Inc. (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials. The Company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). The Company uses its Vertical Gradient Freeze (VGF) technique for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots used to produce wafers for diverse electronic and optoelectronic device and circuit applications.

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.

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