Reviewing Rohm (OTCMKTS:ROHCY) & QuickLogic (NASDAQ:QUIK)

QuickLogic (NASDAQ:QUIK) and Rohm (OTCMKTS:ROHCY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk and Volatility

QuickLogic has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Rohm has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for QuickLogic and Rohm, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	1	1	2	0	2.25
Rohm	0	1	1	0	2.50

QuickLogic presently has a consensus price target of $22.00, indicating a potential upside of 69.23%. Given QuickLogic’s higher possible upside, research analysts clearly believe QuickLogic is more favorable than Rohm.

Institutional & Insider Ownership

31.5% of QuickLogic shares are owned by institutional investors. 3.2% of QuickLogic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares QuickLogic and Rohm”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$14.50 million	16.34	-$14.82 million	($0.89)	-14.61
Rohm	$3.20 billion	3.41	-$1.05 billion	($2.64)	-10.70

QuickLogic has higher earnings, but lower revenue than Rohm. QuickLogic is trading at a lower price-to-earnings ratio than Rohm, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares QuickLogic and Rohm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-102.41%	-48.97%	-27.97%
Rohm	-31.42%	3.55%	2.20%

About QuickLogic

QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.

About Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.