NVIDIA (NASDAQ:NVDA) and TranSwitch (OTCMKTS:TXCCQ) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Earnings & Valuation
This table compares NVIDIA and TranSwitch’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVIDIA||$11.72 billion||9.51||$4.14 billion||$6.07||30.30|
This is a summary of recent ratings and target prices for NVIDIA and TranSwitch, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVIDIA presently has a consensus target price of $204.78, suggesting a potential upside of 11.33%. Given NVIDIA’s higher possible upside, research analysts clearly believe NVIDIA is more favorable than TranSwitch.
Insider and Institutional Ownership
69.1% of NVIDIA shares are owned by institutional investors. Comparatively, 0.2% of TranSwitch shares are owned by institutional investors. 4.7% of NVIDIA shares are owned by insiders. Comparatively, 6.3% of TranSwitch shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
NVIDIA has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, TranSwitch has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500.
This table compares NVIDIA and TranSwitch’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NVIDIA pays an annual dividend of $0.64 per share and has a dividend yield of 0.3%. TranSwitch does not pay a dividend. NVIDIA pays out 10.5% of its earnings in the form of a dividend. NVIDIA has raised its dividend for 6 consecutive years.
NVIDIA beats TranSwitch on 10 of the 12 factors compared between the two stocks.
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units. The Tegra Processor segment provides processors that are primarily designed to enable branded platforms – DRIVE and SHIELD; DRIVE AGX automotive computers and software stacks, which offer self-driving capabilities; Clara AGX for intelligent medical instruments; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson AGX, an AI computing platform for robotics and other embedded use. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. The company was founded in 1993 and is headquartered in Santa Clara, California.
TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.
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