Contrasting Nano Labs (NASDAQ:NA) & Pixelworks (NASDAQ:PXLW)

Nano Labs (NASDAQ:NA) and Pixelworks (NASDAQ:PXLW) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Profitability

This table compares Nano Labs and Pixelworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano Labs	N/A	N/A	N/A
Pixelworks	-82.36%	-300.58%	-43.46%

Institutional and Insider Ownership

50.7% of Nano Labs shares are held by institutional investors. Comparatively, 21.4% of Pixelworks shares are held by institutional investors. 5.3% of Pixelworks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nano Labs and Pixelworks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano Labs	0	0	0	0	0.00
Pixelworks	0	0	3	0	3.00

Pixelworks has a consensus target price of $11.67, indicating a potential upside of 0.66%. Given Pixelworks’ stronger consensus rating and higher possible upside, analysts plainly believe Pixelworks is more favorable than Nano Labs.

Valuation and Earnings

This table compares Nano Labs and Pixelworks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano Labs	$24.14 million	6.12	-$15.75 million	N/A	N/A
Pixelworks	$43.21 million	1.43	-$28.72 million	($5.59)	-2.07

Nano Labs has higher earnings, but lower revenue than Pixelworks.

Risk & Volatility

Nano Labs has a beta of 3.15, indicating that its stock price is 215% more volatile than the S&P 500. Comparatively, Pixelworks has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Summary

Nano Labs beats Pixelworks on 7 of the 12 factors compared between the two stocks.

About Nano Labs

Nano Labs Ltd operates as a fabless integrated circuit design company and product solution provider in the People's Republic of China and internationally. It develops high throughput computing and high-performance computing chips. The company also offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, it engages in the research and development of software. Its customers include enterprises and individual buyers. The company was founded in 2019 and is headquartered in Hangzhou, the People's Republic of China.

About Pixelworks

Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.