Energous (NASDAQ:WATT – Get Free Report) and NVIDIA (NASDAQ:NVDA – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Risk & Volatility
Energous has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.
Profitability
This table compares Energous and NVIDIA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Energous | -76.37% | -28.67% | -24.91% |
| NVIDIA | 63.66% | 96.04% | 71.00% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Energous | $5.63 million | 10.54 | -$9.59 million | ($2.21) | -4.86 |
| NVIDIA | $215.94 billion | 25.71 | $120.07 billion | $7.91 | 29.12 |
NVIDIA has higher revenue and earnings than Energous. Energous is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
4.3% of Energous shares are owned by institutional investors. Comparatively, 65.3% of NVIDIA shares are owned by institutional investors. 0.2% of Energous shares are owned by company insiders. Comparatively, 3.9% of NVIDIA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for Energous and NVIDIA, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Energous | 1 | 1 | 0 | 0 | 1.50 |
| NVIDIA | 0 | 3 | 50 | 2 | 2.98 |
NVIDIA has a consensus target price of $324.83, suggesting a potential upside of 41.01%. Given NVIDIA’s stronger consensus rating and higher probable upside, analysts plainly believe NVIDIA is more favorable than Energous.
Summary
NVIDIA beats Energous on 15 of the 15 factors compared between the two stocks.
About Energous
Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
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