Financial Comparison: QuickLogic (NASDAQ:QUIK) and GlobalFoundries (NASDAQ:GFS)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for QuickLogic and GlobalFoundries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	1	1	2	0	2.25
GlobalFoundries	1	11	8	0	2.35

QuickLogic presently has a consensus price target of $21.00, suggesting a potential upside of 160.87%. GlobalFoundries has a consensus price target of $67.79, suggesting a potential upside of 75.53%. Given QuickLogic’s higher probable upside, analysts plainly believe QuickLogic is more favorable than GlobalFoundries.

Risk and Volatility

QuickLogic has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-80.18%	-45.22%	-27.93%
GlobalFoundries	10.36%	6.69%	4.69%

Institutional and Insider Ownership

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

Earnings & Valuation

This table compares QuickLogic and GlobalFoundries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$13.77 million	10.71	-$14.82 million	($0.77)	-10.45
GlobalFoundries	$6.79 billion	3.12	$885.00 million	$0.35	110.34

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

Summary

GlobalFoundries beats QuickLogic on 9 of the 13 factors compared between the two stocks.

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 GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.