Cirrus Logic (NASDAQ:CRUS) versus Netlist (OTCMKTS:NLST) Financial Analysis

Netlist (OTCMKTS:NLSTGet Free Report) and Cirrus Logic (NASDAQ:CRUSGet Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Valuation & Earnings

This table compares Netlist 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
Netlist $69.21 million 4.99 -$60.40 million ($0.25) -5.40
Cirrus Logic $1.79 billion 4.05 $274.57 million $4.93 27.48

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

Risk and Volatility

Netlist has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Netlist and Cirrus Logic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netlist 0 0 0 0 N/A
Cirrus Logic 0 1 6 0 2.86

Cirrus Logic has a consensus target price of $112.86, indicating a potential downside of 16.69%. Given Cirrus Logic’s higher possible upside, analysts clearly believe Cirrus Logic is more favorable than Netlist.

Profitability

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

Net Margins Return on Equity Return on Assets
Netlist -64.15% -268.19% -97.51%
Cirrus Logic 15.35% 16.49% 13.37%

Insider & Institutional Ownership

0.0% of Netlist shares are owned by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are owned by institutional investors. 2.7% of Netlist shares are owned by company insiders. Comparatively, 1.0% of Cirrus Logic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Cirrus Logic beats Netlist on 10 of the 13 factors compared between the two stocks.

About Netlist

(Get Free Report)

Netlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. The company portfolio of proprietary technologies and design techniques, includes efficient planar design, alternative packaging techniques, and custom semiconductor logic, to deliver memory subsystems; and sells specialty memory modules and flash-based products for use in data center and industrial applications. It resells component products, including solid state drive (SSD), NAND flash, and dual inline memory module (DIMM) to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.

About Cirrus Logic

(Get Free Report)

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.

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