Analyzing Applied Micro Circuits (AMCC) & QuickLogic Corporation (QUIK)

Applied Micro Circuits (NASDAQ: AMCC) and QuickLogic Corporation (NASDAQ:QUIK) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Applied Micro Circuits and QuickLogic Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Micro Circuits 0 4 0 0 2.00
QuickLogic Corporation 0 0 3 0 3.00

Applied Micro Circuits currently has a consensus price target of $8.00, suggesting a potential downside of 5.33%. QuickLogic Corporation has a consensus price target of $2.50, suggesting a potential upside of 51.52%. Given QuickLogic Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe QuickLogic Corporation is more favorable than Applied Micro Circuits.

Valuation and Earnings

This table compares Applied Micro Circuits and QuickLogic Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Applied Micro Circuits N/A N/A N/A ($0.38) -22.24
QuickLogic Corporation $11.95 million 11.06 -$13.93 million ($0.22) -7.50

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

Profitability

This table compares Applied Micro Circuits and QuickLogic Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Micro Circuits -11.11% -16.63% -13.04%
QuickLogic Corporation -130.99% -84.50% -54.86%

Volatility and Risk

Applied Micro Circuits has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, QuickLogic Corporation has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.

Institutional and Insider Ownership

73.3% of Applied Micro Circuits shares are owned by institutional investors. Comparatively, 19.9% of QuickLogic Corporation shares are owned by institutional investors. 12.4% of Applied Micro Circuits shares are owned by insiders. Comparatively, 5.9% of QuickLogic Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Applied Micro Circuits beats QuickLogic Corporation on 6 of the 11 factors compared between the two stocks.

Applied Micro Circuits Company Profile

Applied Micro Circuits Corporation (AMCC) provides silicon solutions for cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. The Company’s products serve Computing and Connectivity markets. Its Computing products include the X-Gene family of server processors, based on the ARMv8 64-bit Instruction Set Architecture (ISA), which target mainstream cloud and data center infrastructure, including hyperscale, telco, enterprise and high performance computing. It also offers embedded computing products, which include HeliX family of processors, based on the ARM 64-bit ISA and its PowerPC products, based on Power Architecture. Its embedded Computing products are deployed in various applications, including networking and telecom, enterprise storage and industrial applications. The Connectivity business includes X-Weave family of products for service providers and public cloud, private cloud and enterprise data centers.

QuickLogic Corporation Company Profile

QuickLogic Corporation develops and markets semiconductor and software algorithm solutions. The Company’s solutions primarily target smartphones, wearable devices, tablets, and the Internet-of-Things (IoT). The Company is a fabless semiconductor provider of flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays (FPGAs). The Company’s solutions integrate multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. The Company’s solutions are created from its new silicon platforms, including EOS, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products, its mature products, which are produced on semiconductor processes over 180 nanometers, primarily include its pASIC 3 and QuickRAM, as well as royalty revenue, programming hardware and design software. Its sensor algorithm software includes SenseMe software library.

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