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

Earnings and Valuation

This table compares DSP Group and QuickLogic’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DSP Group $117.44 million 3.06 -$1.96 million $0.23 68.74
QuickLogic $12.63 million 4.87 -$13.78 million ($0.15) -3.53

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

Analyst Ratings

This is a breakdown of current recommendations for DSP Group and QuickLogic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DSP Group 0 0 3 0 3.00
QuickLogic 0 1 0 0 2.00

DSP Group presently has a consensus target price of $17.33, indicating a potential upside of 9.64%. Given DSP Group’s stronger consensus rating and higher probable upside, analysts plainly believe DSP Group is more favorable than QuickLogic.

Volatility and Risk

DSP Group has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, QuickLogic has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
DSP Group -1.08% 4.48% 3.49%
QuickLogic -101.73% -68.38% -37.63%

Insider & Institutional Ownership

75.6% of DSP Group shares are owned by institutional investors. Comparatively, 14.3% of QuickLogic shares are owned by institutional investors. 6.7% of DSP Group shares are owned by insiders. Comparatively, 3.1% of QuickLogic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

DSP Group beats QuickLogic on 13 of the 14 factors compared between the two stocks.

About DSP Group

DSP Group, Inc., a fabless semiconductor company, provides wireless and audio chipset solutions for converged communications. It operates through three segments: Home, Office, and SmartVoice. The company provides a portfolio of wireless chipsets that integrate DECT/CAT-iq, ULE, Wi-Fi, PSTN, HDClear, video, and VoIP technologies. It also enables converged voice, audio, video, and data connectivity across various mobile, consumer, and enterprise products, including mobile phones, Internet of Things and wearable devices, connected multimedia screens, home automation and security, cordless phones, VoIP systems, and home gateways. The company operates in the United States, Hong Kong, Japan, Europe, China, Taiwan, Korea, and internationally. It sells its products primarily through distributors, as well as directly to original equipment manufacturers and original design manufacturers. DSP Group, Inc. was founded in 1979 and is headquartered in San Jose, California.

About QuickLogic

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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