Financial Analysis: Cirrus Logic (CRUS) and NeoPhotonics Corporation (NPTN)
Cirrus Logic (NASDAQ: CRUS) and NeoPhotonics Corporation (NYSE:NPTN) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Insider & Institutional Ownership
89.2% of Cirrus Logic shares are held by institutional investors. Comparatively, 85.3% of NeoPhotonics Corporation shares are held by institutional investors. 1.9% of Cirrus Logic shares are held by company insiders. Comparatively, 17.3% of NeoPhotonics Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Cirrus Logic has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, NeoPhotonics Corporation has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.
This table compares Cirrus Logic and NeoPhotonics Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Cirrus Logic and NeoPhotonics Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cirrus Logic||$1.60 billion||2.31||$413.94 million||$4.18||13.87|
|NeoPhotonics Corporation||$358.05 million||0.71||$338,000.00||($0.62)||-9.44|
Cirrus Logic has higher revenue and earnings than NeoPhotonics Corporation. NeoPhotonics Corporation is trading at a lower price-to-earnings ratio than Cirrus Logic, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Cirrus Logic and NeoPhotonics Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cirrus Logic currently has a consensus target price of $69.18, suggesting a potential upside of 19.32%. NeoPhotonics Corporation has a consensus target price of $9.97, suggesting a potential upside of 70.41%. Given NeoPhotonics Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe NeoPhotonics Corporation is more favorable than Cirrus Logic.
Cirrus Logic beats NeoPhotonics Corporation on 9 of the 14 factors compared between the two stocks.
Cirrus Logic Company Profile
Cirrus Logic, Inc. is engaged in providing integrated circuits (ICs) for audio and voice signal processing applications. The Company develops analog and mixed-signal ICs for a range of customers. The Company offers two product lines: Portable Audio, and Non-Portable Audio and Other. The Company’s primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas. The Company offers products through both direct and indirect sales channels across the world. The Company’s portable audio products include analog and mixed-signal components designed for mobile devices including smartphones, tablets, digital headsets, wearables, smart accessories and portable media players. Its non-portable audio and other products include analog and mixed-signal components targeting the consumer market, including smart home applications, and the automotive, energy and industrial markets.
NeoPhotonics Corporation Company Profile
NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.
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