Financial Comparison: Switch (NYSE:SWCH) vs. CEVA (NASDAQ:CEVA)

CEVA (NASDAQ:CEVAGet Rating) and Switch (NYSE:SWCHGet Rating) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CEVA and Switch, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEVA 0 0 1 0 3.00
Switch 0 11 2 0 2.15

CEVA currently has a consensus price target of $49.00, indicating a potential upside of 80.68%. Switch has a consensus price target of $31.91, indicating a potential downside of 6.08%. Given CEVA’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CEVA is more favorable than Switch.

Institutional & Insider Ownership

85.4% of CEVA shares are held by institutional investors. Comparatively, 52.6% of Switch shares are held by institutional investors. 2.8% of CEVA shares are held by company insiders. Comparatively, 14.0% of Switch shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CEVA and Switch’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CEVA 0.66% 2.07% 1.75%
Switch 58.11% 2.06% 0.50%

Earnings and Valuation

This table compares CEVA and Switch’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEVA $122.71 million 5.13 $400,000.00 $0.04 678.17
Switch $592.04 million 14.04 $5.41 million $1.52 22.35

Switch has higher revenue and earnings than CEVA. Switch is trading at a lower price-to-earnings ratio than CEVA, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

CEVA has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Switch has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

About CEVA

(Get Rating)

CEVA, Inc. operates as a licensor of wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies worldwide. It designs and licenses various digital signal processors, AI processors, wireless platforms, and complementary software for sensor fusion, image enhancement, computer vision, voice input, and artificial intelligence (AI). The company licenses a family of wireless connectivity and smart sensing technologies, and integrated IP solutions, including DSP-based platforms for 5G baseband processing in mobile, IoT, and infrastructure; imaging and computer vision for any camera-enabled devices; audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets; sensor fusion software and inertial measurement unit solutions for hearables, wearables, AR/VR, PC, robotics, remote controls, and IoT; and wireless IoT for Bluetooth, Wi-Fi 4/5/6/6E, Ultra-wideband (UWB), and NB-IoT. Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to mobile, consumer, automotive, robotics, industrial, aerospace and defense, and IoT companies for incorporation into various end products. The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was incorporated in 1999 and is headquartered in Rockville, Maryland.

About Switch

(Get Rating)

Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services. It develops and operates data centers in Nevada, Michigan, and Georgia. The company serves technology and digital media companies, financial institutions, government agencies, and network and telecommunications providers, as well as cloud, IT, and software providers. Switch, Inc. was founded in 2000 and is headquartered in Las Vegas, Nevada.

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