SCI Engineered Materials (OTCMKTS:SCIA) versus Cirrus Logic (NASDAQ:CRUS) Financial Survey

Cirrus Logic (NASDAQ:CRUS) and SCI Engineered Materials (OTCMKTS:SCIA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

88.0% of Cirrus Logic shares are owned by institutional investors. Comparatively, 27.6% of SCI Engineered Materials shares are owned by institutional investors. 1.2% of Cirrus Logic shares are owned by insiders. Comparatively, 19.7% of SCI Engineered Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Cirrus Logic and SCI Engineered Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cirrus Logic	$1.90 billion	3.12	$331.51 million	$6.39	18.04
SCI Engineered Materials	$22.87 million	0.78	$1.86 million	$0.32	12.09

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

Analyst Ratings

This is a summary of recent ratings for Cirrus Logic and SCI Engineered Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cirrus Logic	0	1	4	0	2.80
SCI Engineered Materials	0	0	0	0	0.00

Cirrus Logic currently has a consensus price target of $121.00, indicating a potential upside of 4.98%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, research analysts plainly believe Cirrus Logic is more favorable than SCI Engineered Materials.

Profitability

This table compares Cirrus Logic and SCI Engineered Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cirrus Logic	18.15%	18.38%	15.29%
SCI Engineered Materials	9.13%	11.23%	9.05%

Volatility & Risk

Cirrus Logic has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, SCI Engineered Materials has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Summary

Cirrus Logic beats SCI Engineered Materials on 13 of the 14 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 SCI Engineered Materials

SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. It offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, thin film solar, flat panel displays, defense, aerospace, and photonics industries. The company’s materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. It serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.