Intel (NASDAQ:INTC) and Nlight (NASDAQ:LASR) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Intel pays an annual dividend of $1.26 per share and has a dividend yield of 2.5%. Nlight does not pay a dividend. Intel pays out 27.5% of its earnings in the form of a dividend. Intel has increased its dividend for 4 consecutive years.
66.0% of Intel shares are held by institutional investors. Comparatively, 78.3% of Nlight shares are held by institutional investors. 0.0% of Intel shares are held by insiders. Comparatively, 5.8% of Nlight shares are held 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.
This table compares Intel and Nlight’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Intel and Nlight, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Intel currently has a consensus target price of $53.33, suggesting a potential upside of 6.79%. Nlight has a consensus target price of $25.57, suggesting a potential upside of 70.48%. Given Nlight’s stronger consensus rating and higher possible upside, analysts plainly believe Nlight is more favorable than Intel.
Volatility and Risk
Intel has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Nlight has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.
Valuation and Earnings
This table compares Intel and Nlight’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Intel||$70.85 billion||3.16||$21.05 billion||$4.58||10.90|
|Nlight||$191.36 million||2.90||$13.94 million||$0.32||46.88|
Intel has higher revenue and earnings than Nlight. Intel is trading at a lower price-to-earnings ratio than Nlight, indicating that it is currently the more affordable of the two stocks.
Intel beats Nlight on 10 of the 18 factors compared between the two stocks.
Intel Company Profile
Intel Corporation offers computing, networking, data storage, and communication solutions worldwide. It operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. The company offers microprocessors, and system-on-chip and multichip packaging products. It also provides NAND flash memory products primarily used in solid-state drives; and programmable semiconductors and related products for communications, data center, industrial, and military markets. In addition, the company develops computer vision and machine learning, data analysis, localization, and mapping for advanced driver assistance systems and autonomous driving. Its platforms are used in notebooks, systems, and desktops; cloud, enterprise, and communication infrastructure market segments; and retail, automotive, industrial, and various other embedded applications. It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers. Intel Corporation has a collaboration with Telefonaktiebolaget LM Ericsson (publ) to develop software defined infrastructure for network functions virtualization, distributed cloud, and 5G applications. The company was founded in 1968 and is based in Santa Clara, California.
Nlight Company Profile
nLIGHT, Inc. designs, develops, and manufactures semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets. The company also produces optical fiber products. It markets and sells its products to original equipment manufacturer primarily through direct sales force in the United States, China, South Korea, Germany, and Finland, as well as through various independent sales representatives and distributors in Asia and Europe. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was founded in 2000 and is headquartered in Vancouver, Washington.
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