Critical Review: Nano Labs (NASDAQ:NA) and SemiLEDs (NASDAQ:LEDS)

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

Volatility & Risk

SemiLEDs has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Nano Labs has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SemiLEDs	-44.37%	-120.86%	-18.80%
Nano Labs	N/A	N/A	N/A

Insider & Institutional Ownership

76.3% of SemiLEDs shares are owned by institutional investors. Comparatively, 50.7% of Nano Labs shares are owned by institutional investors. 40.0% of SemiLEDs 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 Recommendations

This is a breakdown of recent recommendations and price targets for SemiLEDs and Nano Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SemiLEDs	0	0	0	0	N/A
Nano Labs	0	0	0	0	N/A

Earnings & Valuation

This table compares SemiLEDs and Nano Labs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SemiLEDs	$5.31 million	1.71	-$2.69 million	($0.47)	-2.68
Nano Labs	$50.81 million	0.16	-$35.70 million	N/A	N/A

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

Summary

Nano Labs beats SemiLEDs on 5 of the 9 factors compared between the two stocks.

About SemiLEDs

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.

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.