AXT (NASDAQ:AXTI) and Everspin Technologies (NASDAQ:MRAM) Head-To-Head Comparison

Everspin Technologies (NASDAQ:MRAM) and AXT (NASDAQ:AXTI) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Insider and Institutional Ownership

44.7% of Everspin Technologies shares are owned by institutional investors. Comparatively, 49.5% of AXT shares are owned by institutional investors. 6.1% of Everspin Technologies shares are owned by insiders. Comparatively, 8.4% of AXT 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 Ratings

This is a breakdown of current ratings and target prices for Everspin Technologies and AXT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everspin Technologies	0	0	2	0	3.00
AXT	0	0	5	0	3.00

Everspin Technologies currently has a consensus price target of $9.00, indicating a potential upside of 41.07%. AXT has a consensus price target of $5.30, indicating a potential upside of 146.51%. Given AXT’s higher possible upside, analysts clearly believe AXT is more favorable than Everspin Technologies.

Profitability

This table compares Everspin Technologies and AXT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everspin Technologies	2.85%	2.74%	2.27%
AXT	-10.73%	-4.58%	-2.88%

Valuation & Earnings

This table compares Everspin Technologies and AXT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Technologies	$53.87 million	2.60	$9.05 million	$0.06	106.33
AXT	$94.69 million	1.02	-$17.88 million	($0.25)	-8.60

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

Risk and Volatility

Everspin Technologies has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, AXT has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.

Summary

Everspin Technologies beats AXT on 7 of the 13 factors compared between the two stocks.

About Everspin Technologies

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

About AXT

AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.