Netlist (NASDAQ: NLST) and Intermolecular (NASDAQ:IMI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Insider & Institutional Ownership
15.2% of Netlist shares are owned by institutional investors. Comparatively, 37.3% of Intermolecular shares are owned by institutional investors. 15.4% of Netlist shares are owned by insiders. Comparatively, 45.4% of Intermolecular shares are owned 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.
This table compares Netlist and Intermolecular’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Netlist||$19.66 million||0.98||-$11.23 million||($0.22)||-1.25|
|Intermolecular||$37.20 million||1.99||-$10.40 million||($0.22)||-6.77|
Intermolecular has higher revenue and earnings than Netlist. Intermolecular is trading at a lower price-to-earnings ratio than Netlist, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Netlist and Intermolecular, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Netlist currently has a consensus target price of $2.23, indicating a potential upside of 713.87%. Given Netlist’s higher possible upside, research analysts plainly believe Netlist is more favorable than Intermolecular.
Volatility and Risk
Netlist has a beta of -1.22, indicating that its share price is 222% less volatile than the S&P 500. Comparatively, Intermolecular has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
This table compares Netlist and Intermolecular’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Intermolecular beats Netlist on 8 of the 11 factors compared between the two stocks.
Netlist, Inc. designs, manufactures and sells a range of memory subsystems for datacenter, data storage and computing markets. The Company operates in the segment of design and manufacture of memory subsystems for the server, computing and communications markets. The Company’s memory subsystems consist of combinations of dynamic random access memory integrated circuits (DRAM ICs or DRAM), NAND flash memory (NAND flash), application-specific integrated circuits (ASICs) and other components assembled on printed circuit boards (PCBs). The Company primarily markets and sells its products to original equipment manufacturer (OEM) customers, hyper scale datacenter operators and data storage vendors. The Company’s products include NVvault, HyperCloud, and specialty memory modules and flash-based products. NVvault is a memory subsystem that incorporates both DRAM and NAND flash in a single persistent dual-in line memory module (DIMM) solution.
Intermolecular, Inc. provides thin film solutions. The Company’s high productivity combinatorial (HPC) platform, which consists of its tempus processing tools, its automated characterization methods, and its Informatics analysis software, is purpose-built for research and development (R&D) using combinatorial process systems. It develops technology and Internet protocol (IP) rights focused on materials, processes, integration and device architectures in collaboration with its customers. Its HPC platform consists of tempus HPC processing, automated characterization and informatics and analysis software. The Company offers a series of wet processing tools and dry processing tools. Its informatics software includes workflow management software, analysis and reporting software, security and collaboration management software, and integration services. It caters to semiconductor device, semiconductor materials and equipment and clean energy market companies.
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