Cirrus Logic (NASDAQ: CRUS) and Multi-Fineline Electronix (NASDAQ:MFLX) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares Cirrus Logic and Multi-Fineline Electronix’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cirrus Logic $1.60 billion 2.19 $413.94 million $4.18 13.12
Multi-Fineline Electronix N/A N/A N/A $1.02 22.64

Cirrus Logic has higher revenue and earnings than Multi-Fineline Electronix. Cirrus Logic is trading at a lower price-to-earnings ratio than Multi-Fineline Electronix, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

89.1% of Cirrus Logic shares are held by institutional investors. 1.9% of Cirrus Logic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cirrus Logic and Multi-Fineline Electronix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cirrus Logic 2 3 8 0 2.46
Multi-Fineline Electronix 0 0 0 0 N/A

Cirrus Logic presently has a consensus price target of $68.25, suggesting a potential upside of 24.48%. Given Cirrus Logic’s higher possible upside, research analysts clearly believe Cirrus Logic is more favorable than Multi-Fineline Electronix.

Risk and Volatility

Cirrus Logic has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Multi-Fineline Electronix has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Profitability

This table compares Cirrus Logic and Multi-Fineline Electronix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cirrus Logic 17.38% 26.71% 20.92%
Multi-Fineline Electronix -9.63% -10.97% -8.10%

Summary

Cirrus Logic beats Multi-Fineline Electronix on 9 of the 10 factors compared between the two stocks.

Cirrus Logic Company Profile

Cirrus Logic, Inc. is engaged in providing integrated circuits (ICs) for audio and voice signal processing applications. The Company develops analog and mixed-signal ICs for a range of customers. The Company offers two product lines: Portable Audio, and Non-Portable Audio and Other. The Company’s primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas. The Company offers products through both direct and indirect sales channels across the world. The Company’s portable audio products include analog and mixed-signal components designed for mobile devices including smartphones, tablets, digital headsets, wearables, smart accessories and portable media players. Its non-portable audio and other products include analog and mixed-signal components targeting the consumer market, including smart home applications, and the automotive, energy and industrial markets.

Multi-Fineline Electronix Company Profile

Multi-Fineline Electronix, Inc. is engaged in the engineering, design and manufacture of flexible circuit boards along with related component assemblies. The Company provides flexible printed circuits and value-added component assembly solutions to the electronics industry. The Company provides its solutions to original equipment manufacturers (OEMs) and to electronic manufacturing services (EMS) providers. The Company offers products in a range of sectors, including smartphones, tablets, computer/data storage, portable bar code scanners, personal computers, wearables and other consumer electronic devices. The Company’s products include flexible printed circuits, flexible printed circuit assemblies and mechanical integration of flexible printed circuit assemblies. The Company has facilities in Irvine, California; Suzhou, China, and Singapore. The Company operates in the United States, China, Singapore and Other, which includes Malaysia, Korea and the United Kingdom.

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