Silicon Motion Technology Corporation (NASDAQ: SIMO) and QuickLogic Corporation (NASDAQ:QUIK) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Silicon Motion Technology Corporation and QuickLogic Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Motion Technology Corporation 0 3 11 0 2.79
QuickLogic Corporation 0 1 2 0 2.67

Silicon Motion Technology Corporation currently has a consensus target price of $56.60, indicating a potential upside of 21.50%. QuickLogic Corporation has a consensus target price of $2.75, indicating a potential upside of 89.66%. Given QuickLogic Corporation’s higher probable upside, analysts plainly believe QuickLogic Corporation is more favorable than Silicon Motion Technology Corporation.

Dividends

Silicon Motion Technology Corporation pays an annual dividend of $0.79 per share and has a dividend yield of 1.7%. QuickLogic Corporation does not pay a dividend. Silicon Motion Technology Corporation pays out 26.6% of its earnings in the form of a dividend.

Profitability

This table compares Silicon Motion Technology Corporation and QuickLogic Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Motion Technology Corporation 18.91% 24.24% 17.85%
QuickLogic Corporation -130.99% -84.50% -54.86%

Valuation & Earnings

This table compares Silicon Motion Technology Corporation and QuickLogic Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Silicon Motion Technology Corporation $562.80 million 2.96 $145.31 million $2.97 15.68
QuickLogic Corporation $11.95 million 9.72 -$13.93 million ($0.22) -6.59

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

Insider and Institutional Ownership

81.5% of Silicon Motion Technology Corporation shares are owned by institutional investors. Comparatively, 19.9% of QuickLogic Corporation shares are owned by institutional investors. 5.9% of QuickLogic Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Silicon Motion Technology Corporation has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, QuickLogic Corporation has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500.

Summary

Silicon Motion Technology Corporation beats QuickLogic Corporation on 11 of the 15 factors compared between the two stocks.

Silicon Motion Technology Corporation Company Profile

Silicon Motion Technology Corporation is a fabless semiconductor company. The Company designs, develops and markets low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. It is engaged in developing negative-AND (NAND) flash controller integrated circuits (ICs) for solid-state storage devices and specialty radio frequency (RF) ICs for mobile devices. In the mobile storage market, the Company’s products are controllers used in embedded storage products, such as Solid State Drives (SSDs), and Embedded Multimedia Cards (eMMCs), as well as expandable storage products, such as flash memory cards and universal serial bus (USB) flash drives. For the mobile communications market, the Company’s products are handset transceivers and mobile television (TV) System on Chips (SoCs). The Company’s products are used in devices, such as smartphones, tablets and personal computers (PCs).

QuickLogic Corporation Company Profile

QuickLogic Corporation develops and markets semiconductor and software algorithm solutions. The Company’s solutions primarily target smartphones, wearable devices, tablets, and the Internet-of-Things (IoT). The Company is a fabless semiconductor provider of flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays (FPGAs). The Company’s solutions integrate multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. The Company’s solutions are created from its new silicon platforms, including EOS, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products, its mature products, which are produced on semiconductor processes over 180 nanometers, primarily include its pASIC 3 and QuickRAM, as well as royalty revenue, programming hardware and design software. Its sensor algorithm software includes SenseMe software library.

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