Wolfspeed (NYSE:WOLF) and Analog Devices (NASDAQ:ADI) Head-To-Head Comparison

Wolfspeed (NYSE:WOLF) 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 analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk and Volatility

Wolfspeed has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Analog Devices has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

86.8% of Analog Devices shares are owned by institutional investors. 0.6% of Wolfspeed shares are owned by company insiders. Comparatively, 0.3% of Analog Devices shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wolfspeed	-87.35%	-19.35%	-4.16%
Analog Devices	24.34%	12.76%	9.31%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Wolfspeed and Analog Devices, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolfspeed	1	7	6	0	2.36
Analog Devices	0	6	13	0	2.68

Wolfspeed currently has a consensus target price of $46.40, suggesting a potential upside of 57.29%. Analog Devices has a consensus target price of $206.26, suggesting a potential upside of 4.28%. Given Wolfspeed’s higher possible upside, analysts clearly believe Wolfspeed is more favorable than Analog Devices.

Earnings and Valuation

This table compares Wolfspeed and Analog Devices’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolfspeed	$921.90 million	4.03	-$329.90 million	($6.08)	-4.85
Analog Devices	$12.31 billion	7.97	$3.31 billion	$5.59	35.38

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

Summary

Analog Devices beats Wolfspeed on 11 of the 14 factors compared between the two stocks.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.

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.