Comparing QuickLogic (NASDAQ:QUIK) and AXT (NASDAQ:AXTI)

QuickLogic (NASDAQ:QUIK) and AXT (NASDAQ:AXTI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Institutional and Insider Ownership

31.5% of QuickLogic shares are owned by institutional investors. Comparatively, 49.5% of AXT shares are owned by institutional investors. 3.2% of QuickLogic shares are owned by insiders. Comparatively, 6.0% of AXT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares QuickLogic and AXT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$13.77 million	27.09	-$14.82 million	($0.89)	-22.99
AXT	$88.33 million	77.48	-$21.26 million	($0.31)	-337.45

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for QuickLogic and AXT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	1	1	2	0	2.25
AXT	1	2	2	0	2.20

QuickLogic currently has a consensus target price of $22.00, indicating a potential upside of 7.53%. AXT has a consensus target price of $22.80, indicating a potential downside of 78.20%. Given QuickLogic’s stronger consensus rating and higher possible upside, equities research analysts plainly believe QuickLogic is more favorable than AXT.

Risk and Volatility

QuickLogic has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, AXT has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuickLogic	-102.41%	-48.97%	-27.97%
AXT	-14.69%	-5.71%	-3.65%

Summary

AXT beats QuickLogic on 9 of the 13 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 AXT

AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.