Wolfspeed (NYSE:WOLF) vs. VIA optronics (NYSE:VIAO) Head to Head Comparison

VIA optronics (NYSE:VIAO – Get Rating) and Wolfspeed (NYSE:WOLF – Get Rating) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Profitability

This table compares VIA optronics and Wolfspeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VIA optronics	-4.62%	-17.25%	-6.58%
Wolfspeed	-20.14%	-5.43%	-2.35%

Risk & Volatility

VIA optronics has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Insider & Institutional Ownership

18.0% of VIA optronics shares are owned by institutional investors. 15.9% of VIA optronics shares are owned by insiders. Comparatively, 0.6% of Wolfspeed shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares VIA optronics and Wolfspeed’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VIA optronics	$230.25 million	N/A	-$10.75 million	($0.48)	-5.67
Wolfspeed	$746.20 million	8.20	-$200.90 million	($1.48)	-33.20

VIA optronics has higher earnings, but lower revenue than Wolfspeed. Wolfspeed is trading at a lower price-to-earnings ratio than VIA optronics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for VIA optronics and Wolfspeed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VIA optronics	0	0	1	0	3.00
Wolfspeed	1	9	8	0	2.39

VIA optronics presently has a consensus target price of $3.00, suggesting a potential upside of 10.30%. Wolfspeed has a consensus target price of $81.83, suggesting a potential upside of 66.53%. Given Wolfspeed’s higher possible upside, analysts clearly believe Wolfspeed is more favorable than VIA optronics.

Summary

VIA optronics beats Wolfspeed on 7 of the 13 factors compared between the two stocks.

About VIA optronics

(Get Rating)

VIA optronics AG, together with its subsidiaries, provides display solutions worldwide. It also develops, manufactures, and sells customized and application-specific metal mesh touch sensors and electrode base film materials for use in touch modules or other touch products. In addition, the company offers interactive display solutions, including curved display panels and solutions integrating multiple display touch assemblies; and optical bonding services, as well as licenses optical bonding process and sells related equipment. It serves automotive, consumer electronics, and industrial/specialized end markets. The company was founded in 2005 and is headquartered in Nuremberg, Germany. VIA optronics AG is a subsidiary of Integrated Micro-Electronics, Inc.

About Wolfspeed

(Get Rating)

Wolfspeed, Inc. is an innovator of Wolfspeed power and radio frequency (RF) semiconductors. Its Wolfspeed product families include silicon carbide materials, power-switching devices and RF devices targeted for applications such as electric vehicles, fast charging inverters, power supplies, telecom and military and aerospace. The company was founded by Calvin H. Carter Jr., John W. Palmour, F. Neal Hunter, Eric Hunter, and John Edmond in 1987 and is headquartered in Durham, NC.