Head to Head Review: Meta Materials (NASDAQ:MMAT) versus NVIDIA (NASDAQ:NVDA)

Meta Materials (NASDAQ:MMATGet Rating) and NVIDIA (NASDAQ:NVDAGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

9.7% of Meta Materials shares are owned by institutional investors. Comparatively, 61.8% of NVIDIA shares are owned by institutional investors. 10.3% of Meta Materials shares are owned by insiders. Comparatively, 4.0% of NVIDIA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Meta Materials and NVIDIA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meta Materials 0 0 2 0 3.00
NVIDIA 1 9 27 1 2.74

Meta Materials currently has a consensus target price of $3.75, indicating a potential upside of 1,443.21%. NVIDIA has a consensus target price of $276.82, indicating a potential downside of 9.35%. Given Meta Materials’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Meta Materials is more favorable than NVIDIA.

Profitability

This table compares Meta Materials and NVIDIA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meta Materials -918.47% -21.21% -18.31%
NVIDIA 16.19% 26.61% 14.62%

Risk and Volatility

Meta Materials has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Valuation & Earnings

This table compares Meta Materials and NVIDIA’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meta Materials $10.20 million 11.13 -$79.10 million ($0.23) -1.06
NVIDIA $26.97 billion 28.00 $4.37 billion $1.74 175.51

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

Summary

NVIDIA beats Meta Materials on 11 of the 15 factors compared between the two stocks.

About Meta Materials

(Get Rating)

Meta Materials, Inc. engages in the manufacture and development of functional materials. It also provides nano-optic metamaterial technology for anti-counterfeiting security features. The company was founded by George Palikaras, Themos Kallos, and Nadine Geddes on October 30, 2007 and is headquartered in Dartmouth, Canada.

About NVIDIA

(Get Rating)

NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the following segments: Graphics Processing Unit (GPU), Tegra Processor, and All Other. The GPU segment consists of product brands, including GeForce for gamers, Quadro for designers, Tesla and DGX for AI data scientists and big data researchers, and GRID for cloud-based visual computing users. The Tegra Processor segment integrates an entire computer onto a single chip and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices. The All Other segment refers to the stock-based compensation expense, corporate infrastructure and support costs, acquisition-related costs, legal settlement costs, and other non-recurring charges. The company was founded by Jen Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in April 1993 and is headquartered in Santa Clara, CA.

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