Analyzing NXP Semiconductors (NASDAQ:NXPI) and QuickLogic (NASDAQ:QUIK)

QuickLogic (NASDAQ:QUIK) and NXP Semiconductors (NASDAQ:NXPI) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares QuickLogic and NXP Semiconductors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-80.18%	-45.22%	-27.93%
NXP Semiconductors	23.40%	28.57%	11.87%

Valuation & Earnings

This table compares QuickLogic and NXP Semiconductors”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$13.77 million	10.71	-$14.82 million	($0.77)	-10.45
NXP Semiconductors	$12.27 billion	5.10	$2.02 billion	$12.72	19.52

NXP Semiconductors has higher revenue and earnings than QuickLogic. QuickLogic is trading at a lower price-to-earnings ratio than NXP Semiconductors, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

QuickLogic has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500.

Institutional & Insider Ownership

31.5% of QuickLogic shares are owned by institutional investors. Comparatively, 90.5% of NXP Semiconductors shares are owned by institutional investors. 3.2% of QuickLogic shares are owned by insiders. Comparatively, 0.1% of NXP Semiconductors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for QuickLogic and NXP Semiconductors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	1	1	2	0	2.25
NXP Semiconductors	1	9	16	0	2.58

QuickLogic currently has a consensus price target of $21.00, suggesting a potential upside of 160.87%. NXP Semiconductors has a consensus price target of $295.78, suggesting a potential upside of 19.13%. Given QuickLogic’s higher possible upside, equities research analysts clearly believe QuickLogic is more favorable than NXP Semiconductors.

Summary

NXP Semiconductors beats QuickLogic on 11 of the 14 factors compared between the two stocks.

About QuickLogic

QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.