SmartKem (NASDAQ:SMTK) and Cirrus Logic (NASDAQ:CRUS) Head-To-Head Analysis

SmartKem (NASDAQ:SMTK) and Cirrus Logic (NASDAQ:CRUS) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for SmartKem and Cirrus Logic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartKem	1	0	0	0	1.00
Cirrus Logic	0	4	5	0	2.56

Cirrus Logic has a consensus price target of $161.71, suggesting a potential downside of 1.63%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, analysts clearly believe Cirrus Logic is more favorable than SmartKem.

Valuation and Earnings

This table compares SmartKem and Cirrus Logic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartKem	$700,000.00	12.52	-$10.51 million	($2.30)	-0.18
Cirrus Logic	$2.00 billion	4.15	$414.41 million	$7.84	20.97

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

Volatility and Risk

SmartKem has a beta of 3.73, indicating that its stock price is 273% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares SmartKem and Cirrus Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartKem	-3,997.69%	-610.88%	-249.62%
Cirrus Logic	20.75%	20.48%	17.37%

Insider & Institutional Ownership

88.0% of Cirrus Logic shares are owned by institutional investors. 3.5% of SmartKem shares are owned by insiders. Comparatively, 1.2% of Cirrus Logic shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Cirrus Logic beats SmartKem on 11 of the 14 factors compared between the two stocks.

About SmartKem

SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.