Financial Contrast: Cirrus Logic (NASDAQ:CRUS) versus Rohm (OTCMKTS:ROHCY)

Rohm (OTCMKTS:ROHCY) and Cirrus Logic (NASDAQ:CRUS) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Volatility & Risk

Rohm has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Rohm and Cirrus Logic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rohm	$2.95 billion	2.03	-$330.42 million	($0.85)	-17.46
Cirrus Logic	$1.90 billion	3.39	$331.51 million	$6.39	19.61

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rohm	-11.07%	-2.52%	-1.57%
Cirrus Logic	18.15%	18.38%	15.29%

Institutional and Insider Ownership

88.0% of Cirrus Logic shares are held by institutional investors. 1.2% of Cirrus Logic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rohm and Cirrus Logic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rohm	0	2	0	0	2.00
Cirrus Logic	0	1	4	0	2.80

Cirrus Logic has a consensus target price of $123.00, suggesting a potential downside of 1.83%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, analysts clearly believe Cirrus Logic is more favorable than Rohm.

Summary

Cirrus Logic beats Rohm on 12 of the 13 factors compared between the two stocks.

About Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.

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.