QuickLogic (NASDAQ:QUIK) and Nlight (NASDAQ:LASR) Critical Analysis

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

Institutional and Insider Ownership

78.3% of Nlight shares are owned by institutional investors. Comparatively, 17.1% of QuickLogic shares are owned by institutional investors. 3.1% of QuickLogic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Nlight and QuickLogic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nlight 1 4 4 1 2.50
QuickLogic 0 0 0 0 N/A

Nlight presently has a consensus target price of $28.38, suggesting a potential upside of 53.46%. Given Nlight’s higher probable upside, equities research analysts clearly believe Nlight is more favorable than QuickLogic.

Profitability

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

Net Margins Return on Equity Return on Assets
Nlight 5.13% 4.77% 3.97%
QuickLogic -101.73% -68.38% -37.63%

Volatility and Risk

Nlight has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, QuickLogic has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Valuation and Earnings

This table compares Nlight and QuickLogic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nlight $191.36 million 3.58 $13.94 million $0.32 57.78
QuickLogic $12.63 million 6.00 -$13.78 million ($0.15) -5.20

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

Summary

Nlight beats QuickLogic on 12 of the 14 factors compared between the two stocks.

Nlight Company Profile

nLIGHT, Inc. designs, develops, and manufactures semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets. The company also produces optical fiber products. It markets and sells its products to original equipment manufacturer primarily through direct sales force in the United States, China, South Korea, Germany, and Finland, as well as through various independent sales representatives and distributors in Asia and Europe. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was founded in 2000 and is headquartered in Vancouver, Washington.

QuickLogic Company Profile

QuickLogic Corporation, a semiconductor company, develops semiconductor platforms and intellectual property solutions for smartphones, wearable and hearable devices, tablets, and the Internet-of-Things. It also provides flexible sensor processing solutions, ultra-low power display bridges, ultra-low field programmable gate arrays (FPGAs), and programming hardware and design software solutions. The company's products include pASIC 3, QuickRAM, and QuickPCI. It delivers its solutions through ultra-low power customer programmable System on Chip (SoC) semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing, and enhanced visual experiences. The company develops its solutions by incorporating various silicon platforms, such as EOS S3, EOS3 LV, EOS S3AI, ArcticLink III S2, ArcticLink III VX and BX, PolarPro 3, PolarPro II, PolarPro, and Eclipse II solution platforms, as well as packaging, IPs, custom logic, software drivers, SensiML analytics, and architecture consulting. In addition, it licenses FPGA technology for use in other semiconductor companies SoCs. The company markets and sells its products to original equipment manufacturers and original design manufacturers through a network of sales managers and distributors in North America, Europe, and Asia. QuickLogic Corporation was founded in 1988 and is headquartered in Sunnyvale, California.

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