Navitas Semiconductor (NASDAQ:NVTS) & GCT Semiconductor (NYSE:GCTS) Head to Head Review

Navitas Semiconductor (NASDAQ:NVTS) and GCT Semiconductor (NYSE:GCTS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

46.1% of Navitas Semiconductor shares are held by institutional investors. Comparatively, 28.1% of GCT Semiconductor shares are held by institutional investors. 29.9% of Navitas Semiconductor shares are held by insiders. Comparatively, 5.4% of GCT Semiconductor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Navitas Semiconductor has a beta of 3.15, suggesting that its stock price is 215% more volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares Navitas Semiconductor and GCT Semiconductor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$45.92 million	82.65	-$116.95 million	($0.57)	-28.85
GCT Semiconductor	$2.87 million	36.13	-$43.37 million	($0.81)	-1.77

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

Profitability

This table compares Navitas Semiconductor and GCT Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-254.71%	-14.52%	-12.81%
GCT Semiconductor	-1,513.33%	N/A	-231.27%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Navitas Semiconductor and GCT Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	1	5	1	0	2.00
GCT Semiconductor	2	0	2	0	2.00

Navitas Semiconductor presently has a consensus price target of $6.78, suggesting a potential downside of 58.77%. GCT Semiconductor has a consensus price target of $3.50, suggesting a potential upside of 144.58%. Given GCT Semiconductor’s higher possible upside, analysts plainly believe GCT Semiconductor is more favorable than Navitas Semiconductor.

Summary

Navitas Semiconductor beats GCT Semiconductor on 8 of the 13 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.