Silicon Laboratories (NASDAQ:SLAB) and Cirrus Logic (NASDAQ:CRUS) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
94.5% of Silicon Laboratories shares are held by institutional investors. Comparatively, 84.3% of Cirrus Logic shares are held by institutional investors. 2.1% of Silicon Laboratories shares are held by company insiders. Comparatively, 2.0% of Cirrus Logic shares are held by company 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.
This table compares Silicon Laboratories and Cirrus Logic’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Silicon Laboratories||$886.68 million||7.28||$12.53 million||$1.94||74.34|
|Cirrus Logic||$1.37 billion||3.69||$217.34 million||$3.75||23.40|
Cirrus Logic has higher revenue and earnings than Silicon Laboratories. Cirrus Logic is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.
This table compares Silicon Laboratories and Cirrus Logic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Silicon Laboratories and Cirrus Logic, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silicon Laboratories currently has a consensus target price of $166.40, indicating a potential upside of 15.39%. Cirrus Logic has a consensus target price of $103.75, indicating a potential upside of 18.22%. Given Cirrus Logic’s stronger consensus rating and higher probable upside, analysts plainly believe Cirrus Logic is more favorable than Silicon Laboratories.
Volatility and Risk
Silicon Laboratories has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
Cirrus Logic beats Silicon Laboratories on 9 of the 14 factors compared between the two stocks.
About Silicon Laboratories
Silicon Laboratories, Inc. designs and develops analog-intensive and mixed-signal integrated circuits. The firm offers microcontrollers, wireless, sensors, USB bridges, analog, clocks and oscillators, isolators, power, audio and radio, modems and TV and video product categories. It provides solutions for automotive, communications, data centers, healthcare & fitness, home automation & entertainment, industrial automation & power and retail industries. The company was founded by Navdeep S. Sooch, David R. Welland, and Jeffrey W. Scott in August 1996 and is headquartered in Austin, TX.
About Cirrus Logic
Cirrus Logic, Inc. develops high-precision, analog and mixed-signal integrated circuits for a range of customers. It builds an analog and signal-processing patent portfolio. The firm delivers optimized products for a variety of audio, industrial and energy-related applications. Its product lines include portable audio products and non-portable audio and other products. The company was founded by Suhas S. Patil and Michael L. Hackworth in 1984 and is headquartered in Austin, TX.
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