Contrasting Everspin Technologies (NASDAQ:MRAM) & e.Digital (OTCMKTS:EDIG)

Everspin Technologies (NASDAQ:MRAM) and e.Digital (OTCMKTS:EDIG) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Everspin Technologies has a beta of 0.31, suggesting that its stock price is 69% less 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.

Profitability

This table compares Everspin Technologies and e.Digital’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%
e.Digital	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Technologies	$49.11 million	2.57	$9.05 million	($0.02)	-280.50
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A

Everspin Technologies has higher revenue and earnings than e.Digital.

Institutional & Insider Ownership

44.7% of Everspin Technologies shares are owned by institutional investors. 6.9% of Everspin Technologies 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Everspin Technologies and e.Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everspin Technologies	0	0	1	0	3.00
e.Digital	0	0	0	0	0.00

Everspin Technologies presently has a consensus target price of $8.00, suggesting a potential upside of 42.60%. Given Everspin Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe Everspin Technologies is more favorable than e.Digital.

Summary

Everspin Technologies beats e.Digital on 11 of the 12 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 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.