Financial Analysis: Cirrus Logic (NASDAQ:CRUS) versus indie Semiconductor (NASDAQ:INDI)

indie Semiconductor (NASDAQ:INDI) and Cirrus Logic (NASDAQ:CRUS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider and Institutional Ownership

67.7% of indie Semiconductor shares are held by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are held by institutional investors. 8.2% of indie Semiconductor shares are held by company insiders. Comparatively, 1.0% of Cirrus Logic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares indie Semiconductor and Cirrus Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-61.59%	-28.08%	-17.01%
Cirrus Logic	16.55%	16.60%	13.61%

Earnings and Valuation

This table compares indie Semiconductor and Cirrus Logic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$216.68 million	2.17	-$117.62 million	($0.76)	-3.07
Cirrus Logic	$1.84 billion	2.91	$274.57 million	$5.51	18.34

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for indie Semiconductor and Cirrus Logic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	0	1	5	0	2.83
Cirrus Logic	0	1	6	0	2.86

indie Semiconductor currently has a consensus target price of $7.50, indicating a potential upside of 221.89%. Cirrus Logic has a consensus target price of $132.86, indicating a potential upside of 31.48%. Given indie Semiconductor’s higher probable upside, equities research analysts plainly believe indie Semiconductor is more favorable than Cirrus Logic.

Volatility and Risk

indie Semiconductor has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Summary

Cirrus Logic beats indie Semiconductor on 11 of the 14 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.