Critical Survey: indie Semiconductor (NASDAQ:INDI) and NVIDIA (NASDAQ:NVDA)

indie Semiconductor (NASDAQ:INDI) and NVIDIA (NASDAQ:NVDA) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares indie Semiconductor and NVIDIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-34.65%	-22.48%	-12.87%
NVIDIA	55.04%	113.50%	73.83%

Valuation and Earnings

This table compares indie Semiconductor and NVIDIA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$235.32 million	2.73	-$117.62 million	($0.49)	-7.02
NVIDIA	$60.92 billion	56.19	$29.76 billion	$2.13	65.46

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

Volatility and Risk

indie Semiconductor has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for indie Semiconductor and NVIDIA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	0	0	7	0	3.00
NVIDIA	0	4	37	2	2.95

indie Semiconductor presently has a consensus target price of $10.50, indicating a potential upside of 205.23%. NVIDIA has a consensus target price of $143.07, indicating a potential upside of 2.52%. Given indie Semiconductor’s stronger consensus rating and higher probable upside, analysts clearly believe indie Semiconductor is more favorable than NVIDIA.

Institutional & Insider Ownership

67.7% of indie Semiconductor shares are owned by institutional investors. Comparatively, 65.3% of NVIDIA shares are owned by institutional investors. 8.2% of indie Semiconductor shares are owned by insiders. Comparatively, 4.2% of NVIDIA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

NVIDIA beats indie Semiconductor on 11 of the 15 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.