Head to Head Comparison: Cirrus Logic (NASDAQ:CRUS) and Qualcomm (NASDAQ:QCOM)

Cirrus Logic (NASDAQ:CRUS) and Qualcomm (NASDAQ:QCOM) 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, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

88.0% of Cirrus Logic shares are held by institutional investors. Comparatively, 74.4% of Qualcomm shares are held by institutional investors. 1.2% of Cirrus Logic shares are held by company insiders. Comparatively, 0.1% of Qualcomm shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Cirrus Logic and Qualcomm”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cirrus Logic	$2.00 billion	3.70	$414.41 million	$7.84	18.69
Qualcomm	$44.28 billion	4.51	$5.54 billion	$9.20	20.59

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cirrus Logic and Qualcomm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cirrus Logic	0	4	5	0	2.56
Qualcomm	1	20	15	1	2.43

Cirrus Logic currently has a consensus price target of $161.71, indicating a potential upside of 10.39%. Qualcomm has a consensus price target of $218.03, indicating a potential upside of 15.12%. Given Qualcomm’s higher possible upside, analysts plainly believe Qualcomm is more favorable than Cirrus Logic.

Volatility & Risk

Cirrus Logic has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Qualcomm has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cirrus Logic	20.75%	20.48%	17.37%
Qualcomm	22.31%	42.11%	19.33%

Summary

Qualcomm beats Cirrus Logic on 12 of the 15 factors compared between the two stocks.

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.

About Qualcomm

Qualcomm Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.