Comparing Qualcomm (NASDAQ:QCOM) and Cirrus Logic (NASDAQ:CRUS)

Qualcomm (NASDAQ:QCOM) and Cirrus Logic (NASDAQ:CRUS) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Risk and Volatility

Qualcomm has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Qualcomm and Cirrus Logic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qualcomm	$44.28 billion	5.27	$5.54 billion	$9.20	24.06
Cirrus Logic	$2.00 billion	4.18	$414.41 million	$7.84	21.13

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

Institutional & Insider Ownership

74.4% of Qualcomm shares are owned by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are owned by institutional investors. 0.1% of Qualcomm shares are owned by insiders. Comparatively, 1.2% of Cirrus Logic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Qualcomm and Cirrus Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qualcomm	22.31%	42.11%	19.33%
Cirrus Logic	20.75%	20.48%	17.37%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Qualcomm and Cirrus Logic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qualcomm	3	16	15	0	2.35
Cirrus Logic	0	4	5	0	2.56

Qualcomm currently has a consensus target price of $190.17, indicating a potential downside of 14.08%. Cirrus Logic has a consensus target price of $161.71, indicating a potential downside of 2.38%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, analysts clearly believe Cirrus Logic is more favorable than Qualcomm.

Summary

Qualcomm beats Cirrus Logic on 10 of the 14 factors compared between the two stocks.

About Qualcomm

Qualcomm Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.