Park Electrochemical Corporation (NYSE: PKE) and Cirrus Logic (NASDAQ:CRUS) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

This table compares Park Electrochemical Corporation and Cirrus Logic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Park Electrochemical Corporation 6.99% 4.92% 2.89%
Cirrus Logic 17.38% 26.71% 20.92%

Institutional & Insider Ownership

81.7% of Park Electrochemical Corporation shares are held by institutional investors. Comparatively, 89.2% of Cirrus Logic shares are held by institutional investors. 8.0% of Park Electrochemical Corporation shares are held by company insiders. Comparatively, 1.9% 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 stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Park Electrochemical Corporation and Cirrus Logic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park Electrochemical Corporation 0 0 1 0 3.00
Cirrus Logic 1 3 8 0 2.58

Park Electrochemical Corporation presently has a consensus price target of $22.00, indicating a potential upside of 20.75%. Cirrus Logic has a consensus price target of $69.18, indicating a potential upside of 17.60%. Given Park Electrochemical Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Park Electrochemical Corporation is more favorable than Cirrus Logic.

Earnings and Valuation

This table compares Park Electrochemical Corporation and Cirrus Logic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Park Electrochemical Corporation $110.54 million 3.34 $11.91 million $0.38 47.95
Cirrus Logic $1.60 billion 2.35 $413.94 million $4.18 14.07

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

Dividends

Park Electrochemical Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Cirrus Logic does not pay a dividend. Park Electrochemical Corporation pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cirrus Logic beats Park Electrochemical Corporation on 9 of the 15 factors compared between the two stocks.

About Park Electrochemical Corporation

Park Electrochemical Corp. is a global advanced materials company. The Company develops, manufactures, markets and sells digital and radio frequency (RF)/microwave printed circuit materials products principally for the telecommunications and Internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling products for the aerospace markets. The Company operates through integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore. The Company’s foreign operations are conducted principally by the Company’s subsidiaries in Singapore and France.

About Cirrus Logic

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.

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