Microsemi Communications (NASDAQ: VTSS) and Cirrus Logic (NASDAQ:CRUS) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Earnings and Valuation

This table compares Microsemi Communications and Cirrus Logic’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Microsemi Communications N/A N/A N/A N/A N/A
Cirrus Logic $1.60 billion 2.16 $413.94 million $4.18 12.98

Cirrus Logic has higher revenue and earnings than Microsemi Communications.

Insider & Institutional Ownership

94.5% of Cirrus Logic shares are held by institutional investors. 1.9% of Cirrus Logic shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Microsemi Communications -20.36% -69.40% -23.46%
Cirrus Logic 17.38% 26.71% 20.92%

Analyst Recommendations

This is a breakdown of recent ratings for Microsemi Communications and Cirrus Logic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsemi Communications 0 0 0 0 N/A
Cirrus Logic 1 3 8 0 2.58

Cirrus Logic has a consensus target price of $69.18, indicating a potential upside of 27.52%. Given Cirrus Logic’s higher possible upside, analysts plainly believe Cirrus Logic is more favorable than Microsemi Communications.

Summary

Cirrus Logic beats Microsemi Communications on 8 of the 8 factors compared between the two stocks.

About Microsemi Communications

Vitesse Semiconductor Corporation supplies high-performance integrated circuits used by manufacturers of networking systems for Carrier and Enterprise networking applications. The Company designs, develops and markets a diverse networking and connectivity IC solutions. The Company develops and manufactures variety of products that are marketed to Carrier and Enterprise networking, as well as data center infrastructure original equipment manufacturers. The Company’s product lines include Ethernet Switching Product Line that addresses Gigabit Ethernet and 10 Gigabit Ethernet applications in Carrier and Enterprise markets; Connectivity Product Line includes mixed-signal physical layer devices for connection of systems via optical fiber, copper cable, or backplanes and Transport Processing Product Line addresses the needs of Carrier network providers as they undergo a migration to new Ethernet packet-based networks.

About Cirrus Logic

Cirrus Logic, Inc. is engaged in providing integrated circuits (ICs) for audio and voice signal processing applications. The Company develops analog and mixed-signal ICs for a range of customers. The Company offers two product lines: Portable Audio, and Non-Portable Audio and Other. The Company’s primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas. The Company offers products through both direct and indirect sales channels across the world. The Company’s portable audio products include analog and mixed-signal components designed for mobile devices including smartphones, tablets, digital headsets, wearables, smart accessories and portable media players. Its non-portable audio and other products include analog and mixed-signal components targeting the consumer market, including smart home applications, and the automotive, energy and industrial markets.

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