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

Profitability

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

Net Margins Return on Equity Return on Assets
Netlist -53.58% N/A -73.94%
QuickLogic Corporation -130.99% -89.09% -56.40%

Insider and Institutional Ownership

31.7% of Netlist shares are held by institutional investors. Comparatively, 20.2% of QuickLogic Corporation shares are held by institutional investors. 12.3% of Netlist shares are held by company insiders. Comparatively, 5.9% of QuickLogic Corporation 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.

Risk & Volatility

Netlist has a beta of -1.1, meaning that its share price is 210% less volatile than the S&P 500. Comparatively, QuickLogic Corporation has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500.

Earnings and Valuation

This table compares Netlist and QuickLogic Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Netlist $21.05 million 2.79 -$13.32 million N/A N/A
QuickLogic Corporation $11.95 million 8.68 -$13.93 million ($0.22) -5.91

Netlist has higher revenue and earnings than QuickLogic Corporation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Netlist and QuickLogic Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netlist 0 0 2 0 3.00
QuickLogic Corporation 0 1 2 0 2.67

Netlist currently has a consensus target price of $3.30, suggesting a potential upside of 247.33%. QuickLogic Corporation has a consensus target price of $2.33, suggesting a potential upside of 79.49%. Given Netlist’s stronger consensus rating and higher probable upside, analysts plainly believe Netlist is more favorable than QuickLogic Corporation.

Summary

Netlist beats QuickLogic Corporation on 8 of the 11 factors compared between the two stocks.

About Netlist

Netlist, Inc. designs, manufactures and sells a range of memory subsystems for datacenter, data storage and computing markets. The Company operates in the segment of design and manufacture of memory subsystems for the server, computing and communications markets. The Company’s memory subsystems consist of combinations of dynamic random access memory integrated circuits (DRAM ICs or DRAM), NAND flash memory (NAND flash), application-specific integrated circuits (ASICs) and other components assembled on printed circuit boards (PCBs). The Company primarily markets and sells its products to original equipment manufacturer (OEM) customers, hyper scale datacenter operators and data storage vendors. The Company’s products include NVvault, HyperCloud, and specialty memory modules and flash-based products. NVvault is a memory subsystem that incorporates both DRAM and NAND flash in a single persistent dual-in line memory module (DIMM) solution.

About QuickLogic Corporation

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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