Control4 Corporation (NASDAQ: CTRL) and Skullcandy (NASDAQ:SKUL) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Insider and Institutional Ownership

74.3% of Control4 Corporation shares are owned by institutional investors. Comparatively, 46.7% of Skullcandy shares are owned by institutional investors. 6.1% of Control4 Corporation shares are owned by insiders. Comparatively, 7.7% of Skullcandy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Control4 Corporation and Skullcandy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Control4 Corporation $224.20 million 2.61 $18.97 million $0.41 57.37
Skullcandy N/A N/A N/A $0.07 90.58

Control4 Corporation has higher revenue and earnings than Skullcandy. Control4 Corporation is trading at a lower price-to-earnings ratio than Skullcandy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Control4 Corporation and Skullcandy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Control4 Corporation 4.70% 10.77% 8.86%
Skullcandy -2.75% -4.04% -3.32%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Control4 Corporation and Skullcandy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Control4 Corporation 0 3 4 0 2.57
Skullcandy 0 1 0 0 2.00

Control4 Corporation currently has a consensus target price of $20.00, indicating a potential downside of 14.97%. Skullcandy has a consensus target price of $6.35, indicating a potential upside of 0.16%. Given Skullcandy’s higher possible upside, analysts clearly believe Skullcandy is more favorable than Control4 Corporation.

Volatility and Risk

Control4 Corporation has a beta of -0.6, indicating that its stock price is 160% less volatile than the S&P 500. Comparatively, Skullcandy has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Summary

Control4 Corporation beats Skullcandy on 8 of the 11 factors compared between the two stocks.

About Control4 Corporation

Control4 Corporation (Control4) is a provider of smart home and business solutions. The Company’s smart home and small business solutions provide consumers with the ability to integrate audio, video, lighting, temperature, security, communications, network management and other functionalities into a unified automation solution, customized to match their lifestyles and business needs. Its Control4 solution integrates various third-party devices and systems into a unified solution for mainstream consumers. Through its unified software platform, consumers can interact with their entire automated home without learning multiple interfaces or various remote controls. Its Control4 product line is the Control4 Home Operating System (C4 OS), and the associated application software and software development kits (SDKs). Its products with embedded software and services include controllers, interface devices, lighting products, comfort products, security products and communication products.

About Skullcandy

Skullcandy, Inc. creates audio experiences through its Skullcandy and Astro Gaming brands. The Company operates in two segments: Domestic and International. The Domestic segment consists of Skullcandy and Astro Gaming product sales to customers in the United States. The International segment includes Skullcandy product sales to customers in Europe, Asia, Canada Mexico, and all other geographic areas outside the United States that are served by the Company’s International operations. The Company focuses its product offerings in two categories: audio and gaming. The Company primarily operates in the consumer products category in which the Company develops and distributes headphones and other audio products. Astro Gaming creates premium video gaming equipment for professional gamers, leagues, and gaming enthusiasts. Skullcandy brand creates various audio and gaming products.

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