Critical Analysis: Navitas Semiconductor (NASDAQ:NVTS) & QuickLogic (NASDAQ:QUIK)

Navitas Semiconductor (NASDAQ:NVTS) and QuickLogic (NASDAQ:QUIK) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Navitas Semiconductor and QuickLogic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	1	3	3	0	2.29
QuickLogic	0	0	3	1	3.25

Navitas Semiconductor currently has a consensus price target of $5.65, suggesting a potential downside of 12.13%. QuickLogic has a consensus price target of $10.8667, suggesting a potential upside of 92.33%. Given QuickLogic’s stronger consensus rating and higher probable upside, analysts clearly believe QuickLogic is more favorable than Navitas Semiconductor.

Institutional and Insider Ownership

46.1% of Navitas Semiconductor shares are held by institutional investors. Comparatively, 31.5% of QuickLogic shares are held by institutional investors. 29.9% of Navitas Semiconductor shares are held by company insiders. Comparatively, 1.5% of QuickLogic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Navitas Semiconductor and QuickLogic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-182.63%	-18.16%	-16.26%
QuickLogic	-40.36%	-27.35%	-13.58%

Valuation & Earnings

This table compares Navitas Semiconductor and QuickLogic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$83.30 million	16.45	-$84.60 million	($0.65)	-9.89
QuickLogic	$20.11 million	4.62	-$3.84 million	($0.47)	-12.02

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

Volatility & Risk

Navitas Semiconductor has a beta of 3.02, suggesting that its stock price is 202% more volatile than the S&P 500. Comparatively, QuickLogic has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

About QuickLogic

QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.