Reviewing indie Semiconductor (NASDAQ:INDI) and Cirrus Logic (NASDAQ:CRUS)

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cirrus Logic and indie Semiconductor, as reported by MarketBeat.

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

Cirrus Logic presently has a consensus price target of $132.86, suggesting a potential upside of 31.48%. indie Semiconductor has a consensus price target of $7.50, suggesting a potential upside of 221.89%. Given indie Semiconductor’s higher probable upside, analysts clearly believe indie Semiconductor is more favorable than Cirrus Logic.

Profitability

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

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

Risk & Volatility

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

Valuation & Earnings

This table compares Cirrus Logic and indie Semiconductor”s revenue, earnings per share (EPS) and valuation.

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

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.

Summary

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

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.

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.