QuickLogic Corporation (NASDAQ: QUIK) and Sanmina Corporation (NASDAQ:SANM) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Institutional and Insider Ownership

19.9% of QuickLogic Corporation shares are owned by institutional investors. Comparatively, 92.8% of Sanmina Corporation shares are owned by institutional investors. 5.9% of QuickLogic Corporation shares are owned by company insiders. Comparatively, 5.0% of Sanmina Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

QuickLogic Corporation has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, Sanmina Corporation has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QuickLogic Corporation $11.95 million 11.80 -$13.93 million ($0.22) -8.00
Sanmina Corporation $6.78 billion 0.41 $359.35 million $2.76 13.33

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

Profitability

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

Net Margins Return on Equity Return on Assets
QuickLogic Corporation -130.99% -84.50% -54.86%
Sanmina Corporation 3.15% 12.35% 5.61%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QuickLogic Corporation 0 0 3 0 3.00
Sanmina Corporation 0 2 3 0 2.60

QuickLogic Corporation currently has a consensus price target of $2.50, indicating a potential upside of 42.05%. Sanmina Corporation has a consensus price target of $43.25, indicating a potential upside of 17.53%. Given QuickLogic Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe QuickLogic Corporation is more favorable than Sanmina Corporation.

Summary

Sanmina Corporation beats QuickLogic Corporation on 8 of the 12 factors compared between the two stocks.

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.

About Sanmina Corporation

Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.

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