QuickLogic (NASDAQ:QUIK – Get Free Report) and Ambarella (NASDAQ:AMBA – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
Profitability
This table compares QuickLogic and Ambarella’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QuickLogic | -58.26% | -33.71% | -17.70% |
| Ambarella | -21.31% | -13.02% | -10.52% |
Institutional & Insider Ownership
31.5% of QuickLogic shares are owned by institutional investors. Comparatively, 82.1% of Ambarella shares are owned by institutional investors. 1.5% of QuickLogic shares are owned by insiders. Comparatively, 5.3% of Ambarella shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QuickLogic | $20.11 million | 5.46 | -$3.84 million | ($0.57) | -11.26 |
| Ambarella | $284.86 million | 10.79 | -$117.13 million | ($1.88) | -37.98 |
QuickLogic has higher earnings, but lower revenue than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than QuickLogic, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for QuickLogic and Ambarella, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QuickLogic | 1 | 2 | 1 | 0 | 2.00 |
| Ambarella | 1 | 4 | 7 | 2 | 2.71 |
QuickLogic currently has a consensus target price of $11.00, suggesting a potential upside of 71.34%. Ambarella has a consensus target price of $96.00, suggesting a potential upside of 34.45%. Given QuickLogic’s higher possible upside, equities research analysts plainly believe QuickLogic is more favorable than Ambarella.
Risk & Volatility
QuickLogic has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Ambarella has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.
Summary
Ambarella beats QuickLogic on 11 of the 15 factors compared between the two stocks.
About QuickLogic
QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.
About Ambarella
Ambarella, Inc. develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; enterprise and public class, and home security camera; and robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the enterprise, home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
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