Critical Review: Knowles Corporation (KN) vs. QLogic (QLGC)

QLogic (NASDAQ: QLGC) and Knowles Corporation (NYSE:KN) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Earnings and Valuation

This table compares QLogic and Knowles Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QLogic N/A N/A N/A $0.75 21.43
Knowles Corporation $867.60 million 1.52 $141.10 million ($0.23) -63.95

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

Volatility and Risk

QLogic has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for QLogic and Knowles Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QLogic 0 0 0 0 N/A
Knowles Corporation 0 2 3 0 2.60

Knowles Corporation has a consensus price target of $17.80, suggesting a potential upside of 21.01%. Given Knowles Corporation’s higher possible upside, analysts plainly believe Knowles Corporation is more favorable than QLogic.

Profitability

This table compares QLogic and Knowles Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QLogic 15.71% 9.67% 8.76%
Knowles Corporation -2.44% 6.98% 4.62%

Summary

QLogic beats Knowles Corporation on 5 of the 8 factors compared between the two stocks.

About QLogic

QLogic Corporation (QLogic), designs and supplies server and storage networking connectivity products that provide and manage computer data communication. The Company’s products facilitate the transfer of data and enable resource sharing between servers, networks and storage. Its products are used in enterprise, managed service provider, consumer Web, and cloud service provider data centers. Its products are based primarily on Fiber Channel and Ethernet technologies and are used in connection with storage networks, data networks and converged networks. Storage networks are used to provide access to storage across enterprise environments. Fibre Channel is a technology for enterprise storage networking. Data networks are used to provide workstation-to-server, server-to-server, and server-to-storage connectivity using Ethernet. Converged networks are designed to address the data center by consolidating and unifying storage and data networks, using high-speed Ethernet.

About Knowles Corporation

Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.

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