Skullcandy (NASDAQ: SKUL) and Control4 Corporation (NASDAQ:CTRL) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

46.7% of Skullcandy shares are owned by institutional investors. Comparatively, 77.1% of Control4 Corporation shares are owned by institutional investors. 7.7% of Skullcandy shares are owned by insiders. Comparatively, 6.1% of Control4 Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Skullcandy and Control4 Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Skullcandy N/A N/A N/A $0.07 90.58
Control4 Corporation $224.20 million 2.57 $18.97 million $0.41 56.51

Control4 Corporation has higher revenue and earnings than Skullcandy. Control4 Corporation is trading at a lower price-to-earnings ratio than Skullcandy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Skullcandy and Control4 Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Skullcandy 0 1 0 0 2.00
Control4 Corporation 0 3 4 0 2.57

Skullcandy currently has a consensus target price of $6.35, indicating a potential upside of 0.16%. Control4 Corporation has a consensus target price of $20.00, indicating a potential downside of 13.68%. Given Skullcandy’s higher possible upside, equities analysts clearly believe Skullcandy is more favorable than Control4 Corporation.

Volatility & Risk

Skullcandy has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Control4 Corporation has a beta of -0.6, indicating that its share price is 160% less volatile than the S&P 500.

Profitability

This table compares Skullcandy and Control4 Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Skullcandy -2.75% -4.04% -3.32%
Control4 Corporation 4.70% 10.77% 8.86%

Summary

Control4 Corporation beats Skullcandy on 8 of the 11 factors compared between the two stocks.

About Skullcandy

Skullcandy, Inc. creates audio experiences through its Skullcandy and Astro Gaming brands. The Company operates in two segments: Domestic and International. The Domestic segment consists of Skullcandy and Astro Gaming product sales to customers in the United States. The International segment includes Skullcandy product sales to customers in Europe, Asia, Canada Mexico, and all other geographic areas outside the United States that are served by the Company’s International operations. The Company focuses its product offerings in two categories: audio and gaming. The Company primarily operates in the consumer products category in which the Company develops and distributes headphones and other audio products. Astro Gaming creates premium video gaming equipment for professional gamers, leagues, and gaming enthusiasts. Skullcandy brand creates various audio and gaming products.

About Control4 Corporation

Control4 Corporation (Control4) is a provider of smart home and business solutions. The Company’s smart home and small business solutions provide consumers with the ability to integrate audio, video, lighting, temperature, security, communications, network management and other functionalities into a unified automation solution, customized to match their lifestyles and business needs. Its Control4 solution integrates various third-party devices and systems into a unified solution for mainstream consumers. Through its unified software platform, consumers can interact with their entire automated home without learning multiple interfaces or various remote controls. Its Control4 product line is the Control4 Home Operating System (C4 OS), and the associated application software and software development kits (SDKs). Its products with embedded software and services include controllers, interface devices, lighting products, comfort products, security products and communication products.

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