Comparing Analog Devices (NASDAQ:ADI) and QuickLogic (NASDAQ:QUIK)

QuickLogic (NASDAQ:QUIK) and Analog Devices (NASDAQ:ADI) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

31.5% of QuickLogic shares are held by institutional investors. Comparatively, 86.8% of Analog Devices shares are held by institutional investors. 2.5% of QuickLogic shares are held by company insiders. Comparatively, 0.3% of Analog Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

QuickLogic has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Analog Devices has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares QuickLogic and Analog Devices”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$21.20 million	5.22	-$260,000.00	($0.10)	-75.30
Analog Devices	$9.70 billion	10.98	$3.31 billion	$3.33	64.44

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

Profitability

This table compares QuickLogic and Analog Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-6.83%	-7.30%	-3.04%
Analog Devices	17.07%	9.47%	6.89%

Analyst Recommendations

This is a summary of current ratings for QuickLogic and Analog Devices, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	0	0	2	0	3.00
Analog Devices	0	6	16	0	2.73

QuickLogic presently has a consensus target price of $11.50, suggesting a potential upside of 52.72%. Analog Devices has a consensus target price of $252.05, suggesting a potential upside of 17.46%. Given QuickLogic’s stronger consensus rating and higher probable upside, research analysts plainly believe QuickLogic is more favorable than Analog Devices.

Summary

Analog Devices beats QuickLogic on 10 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 Analog Devices

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. It also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, the company provides digital signal processing and system products for numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.