GlobalFoundries (NASDAQ:GFS) versus QuickLogic (NASDAQ:QUIK) Financial Review

GlobalFoundries (NASDAQ:GFS) and QuickLogic (NASDAQ:QUIK) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Volatility & Risk

GlobalFoundries has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, QuickLogic has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GlobalFoundries	2.81%	7.16%	5.02%
QuickLogic	-80.18%	-45.22%	-27.93%

Insider and Institutional Ownership

31.5% of QuickLogic shares are held by institutional investors. 3.2% of QuickLogic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for GlobalFoundries and QuickLogic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GlobalFoundries	2	10	8	0	2.30
QuickLogic	1	1	2	0	2.25

GlobalFoundries presently has a consensus target price of $67.79, indicating a potential upside of 57.50%. QuickLogic has a consensus target price of $17.00, indicating a potential upside of 87.33%. Given QuickLogic’s higher possible upside, analysts clearly believe QuickLogic is more favorable than GlobalFoundries.

Valuation and Earnings

This table compares GlobalFoundries and QuickLogic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GlobalFoundries	$6.79 billion	3.48	$885.00 million	$0.35	122.97
QuickLogic	$13.77 million	12.07	-$14.82 million	($0.77)	-11.79

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

Summary

GlobalFoundries beats QuickLogic on 10 of the 14 factors compared between the two stocks.

About GlobalFoundries

GlobalFoundries is a semiconductor foundry that manufactures integrated circuits for customers that design their own chips. Its services include wafer fabrication, process technology development, packaging support and design enablement, helping customers bring semiconductor products to market without operating their own fabrication facilities. The company focuses on specialty technologies used in areas such as automotive electronics, communications, industrial systems, smart devices and data centers.

About QuickLogic

QuickLogic Corporation is a fabless semiconductor company that develops low-power, programmable semiconductor solutions and embedded FPGA (eFPGA) intellectual property. Its technology is designed to allow customers to add configurable logic to application-specific integrated circuits (ASICs) and systems-on-chip (SoCs), helping support customization, connectivity, sensor processing and other functions without requiring a separate FPGA device. The company offers eFPGA IP, customer-specific standard products (CSSPs), and related development tools and design services.