Reviewing Astera Labs (NASDAQ:ALAB) & QuickLogic (NASDAQ:QUIK)

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

Profitability

This table compares QuickLogic and Astera Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-80.18%	-45.22%	-27.93%
Astera Labs	30.74%	19.24%	17.27%

Risk & Volatility

QuickLogic has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Astera Labs has a beta of 3.68, meaning that its stock price is 268% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QuickLogic and Astera Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	1	1	2	0	2.25
Astera Labs	0	10	11	0	2.52

QuickLogic currently has a consensus target price of $21.00, suggesting a potential upside of 133.85%. Astera Labs has a consensus target price of $348.33, suggesting a potential upside of 21.87%. Given QuickLogic’s higher possible upside, equities research analysts plainly believe QuickLogic is more favorable than Astera Labs.

Institutional & Insider Ownership

31.5% of QuickLogic shares are owned by institutional investors. Comparatively, 60.5% of Astera Labs shares are owned by institutional investors. 3.2% of QuickLogic shares are owned by insiders. Comparatively, 10.4% of Astera Labs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares QuickLogic and Astera Labs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$13.77 million	11.95	-$14.82 million	($0.77)	-11.66
Astera Labs	$1.20 billion	41.26	$219.13 million	$2.02	141.50

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

Summary

Astera Labs beats QuickLogic on 13 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 Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.