Skullcandy (NASDAQ: SKUL) and Control4 Corporation (NASDAQ:CTRL) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Skullcandy and Control4 Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Skullcandy -2.75% -4.04% -3.32%
Control4 Corporation 4.70% 10.77% 8.86%

Analyst Ratings

This is a summary of current recommendations and price targets for Skullcandy and Control4 Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Skullcandy 0 1 0 0 2.00
Control4 Corporation 0 3 4 0 2.57

Skullcandy currently has a consensus target price of $6.35, suggesting a potential upside of 0.16%. Control4 Corporation has a consensus target price of $20.00, suggesting a potential downside of 19.65%. Given Skullcandy’s higher probable upside, research analysts clearly believe Skullcandy is more favorable than Control4 Corporation.

Valuation and Earnings

This table compares Skullcandy and Control4 Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Skullcandy N/A N/A N/A $0.07 90.58
Control4 Corporation $224.20 million 2.76 $18.97 million $0.41 60.71

Control4 Corporation has higher revenue and earnings than Skullcandy. Control4 Corporation is trading at a lower price-to-earnings ratio than Skullcandy, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Skullcandy has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Control4 Corporation has a beta of -0.62, indicating that its share price is 162% less volatile than the S&P 500.

Institutional and Insider Ownership

46.7% of Skullcandy shares are held by institutional investors. Comparatively, 74.3% of Control4 Corporation shares are held by institutional investors. 7.7% of Skullcandy shares are held by company insiders. Comparatively, 6.1% of Control4 Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Control4 Corporation beats Skullcandy on 8 of the 11 factors compared between the two stocks.

Skullcandy Company Profile

Skullcandy, Inc. creates audio experiences through its Skullcandy and Astro Gaming brands. The Company operates in two segments: Domestic and International. The Domestic segment consists of Skullcandy and Astro Gaming product sales to customers in the United States. The International segment includes Skullcandy product sales to customers in Europe, Asia, Canada Mexico, and all other geographic areas outside the United States that are served by the Company’s International operations. The Company focuses its product offerings in two categories: audio and gaming. The Company primarily operates in the consumer products category in which the Company develops and distributes headphones and other audio products. Astro Gaming creates premium video gaming equipment for professional gamers, leagues, and gaming enthusiasts. Skullcandy brand creates various audio and gaming products.

Control4 Corporation Company Profile

Control4 Corporation (Control4) is a provider of smart home and business solutions. The Company’s smart home and small business solutions provide consumers with the ability to integrate audio, video, lighting, temperature, security, communications, network management and other functionalities into a unified automation solution, customized to match their lifestyles and business needs. Its Control4 solution integrates various third-party devices and systems into a unified solution for mainstream consumers. Through its unified software platform, consumers can interact with their entire automated home without learning multiple interfaces or various remote controls. Its Control4 product line is the Control4 Home Operating System (C4 OS), and the associated application software and software development kits (SDKs). Its products with embedded software and services include controllers, interface devices, lighting products, comfort products, security products and communication products.

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