Nordic Semiconductor ASA (OTCMKTS:NDCVF) & Diodes (NASDAQ:DIOD) Financial Analysis

Nordic Semiconductor ASA (OTCMKTS:NDCVF) and Diodes (NASDAQ:DIOD) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Earnings & Valuation

This table compares Nordic Semiconductor ASA and Diodes’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nordic Semiconductor ASA	N/A	N/A	N/A	$0.09	86.55
Diodes	$1.66 billion	1.93	$227.18 million	$4.91	14.19

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

Profitability

This table compares Nordic Semiconductor ASA and Diodes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nordic Semiconductor ASA	N/A	N/A	N/A
Diodes	13.67%	12.79%	9.54%

Institutional and Insider Ownership

23.9% of Nordic Semiconductor ASA shares are owned by institutional investors. Comparatively, 99.2% of Diodes shares are owned by institutional investors. 2.6% of Diodes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Nordic Semiconductor ASA and Diodes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nordic Semiconductor ASA	1	2	2	0	2.20
Diodes	0	3	2	0	2.40

Diodes has a consensus target price of $72.40, suggesting a potential upside of 3.90%. Given Diodes’ stronger consensus rating and higher possible upside, analysts plainly believe Diodes is more favorable than Nordic Semiconductor ASA.

Summary

Diodes beats Nordic Semiconductor ASA on 9 of the 10 factors compared between the two stocks.

About Nordic Semiconductor ASA

Nordic Semiconductor ASA, a fabless semiconductor company, designs, sells, and delivers integrated circuits (ICs) and related products and services for use in short- and long- range wireless applications in Europe, the Americas, and the Asia Pacific. The company offers cellular IoT solutions comprising NB-IoT and LTE-M; Wi-Fi solution; Bluetooth Low Energy Systems-on-Chip (SoCs); Bluetooth LE audio products; Bluetooth mesh; Bluetooth direction finding solution; DECT NR+, a non-cellular radio standard; Thread, an IP-based wireless networking protocol solution; Zigbee products; ANT solutions, including wireless multiprotocol SoCs supporting the ANT wireless protocol; nRF52 and nRF51 wireless SoCs; and range extenders. It also provides Matter, a Connected Home over IP solution; Amazon sidewalk; multiprotocol SoCs; Bluetooth wireless technology; security solution; power management ICs comprising nPM1100 PMIC, nPM1300 PMIC, and nPM6001 PMIC; cloud services, such as location, security, and device management services; nRF Cloud solution; and application specific integrated circuits and related consulting services. The company's products are used in various applications, such as audio, automotive, asset tracking, beacon, computer peripherals, connected health, smart agriculture, smart home and metering, education, building automation, LED lighting, logistics and transport, retail and payment, sports and fitness, toys and gaming, virtual reality and augmented reality products, and wearables. Nordic Semiconductor ASA was founded in 1983 and is headquartered in Trondheim, Norway.

About Diodes

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.