Contrasting NVIDIA (NASDAQ:NVDA) and e.Digital (OTCMKTS:EDIG)

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

Profitability

This table compares NVIDIA and e.Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVIDIA	55.69%	114.83%	76.61%
e.Digital	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for NVIDIA and e.Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVIDIA	0	3	37	2	2.98
e.Digital	0	0	0	0	0.00

NVIDIA currently has a consensus target price of $171.76, indicating a potential upside of 46.16%. Given NVIDIA’s stronger consensus rating and higher probable upside, equities research analysts clearly believe NVIDIA is more favorable than e.Digital.

Valuation & Earnings

This table compares NVIDIA and e.Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVIDIA	$130.50 billion	21.97	$29.76 billion	$2.94	39.97
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A

NVIDIA has higher revenue and earnings than e.Digital.

Risk and Volatility

NVIDIA has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, e.Digital has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.

Institutional & Insider Ownership

65.3% of NVIDIA shares are owned by institutional investors. 4.2% of NVIDIA shares are owned by company insiders. Comparatively, 2.3% of e.Digital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

NVIDIA beats e.Digital on 12 of the 13 factors compared between the two stocks.

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.

About e.Digital

e.Digital Corporation engages in developing and marketing an intellectual property portfolio of context and interpersonal awareness systems, advanced data security technologies, secure communication technologies, and other technologies. It is involved in licensing and enforcing its Nunchi portfolio of patents related to context and interpersonal awareness systems; microSignet data security technology based on characteristics in semi-conductors; Synap security system, method, and apparatus to solve the issues of encryption key generation and exchange; and other technologies. The company was formerly known as Norris Communications, Inc. and changed its name to e.Digital Corporation in January 1999. e.Digital Corporation was founded in 1988 and is based in San Diego, California.