Qualstar (OTCMKTS:QBAK) and Netlist (OTCMKTS:NLST) Head to Head Analysis

Qualstar (OTCMKTS:QBAK) and Netlist (OTCMKTS:NLST) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Qualstar and Netlist, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qualstar	0	0	0	0	0.00
Netlist	0	0	1	0	3.00

Profitability

This table compares Qualstar and Netlist’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qualstar	1.06%	N/A	N/A
Netlist	-13.16%	N/A	-55.26%

Earnings and Valuation

This table compares Qualstar and Netlist”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qualstar	$6.59 million	2.20	$70,000.00	$0.03	350.00
Netlist	$188.63 million	3.00	-$24.82 million	($0.08)	-22.25

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

Insider and Institutional Ownership

0.0% of Netlist shares are owned by institutional investors. 36.0% of Qualstar shares are owned by insiders. Comparatively, 4.0% of Netlist shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Qualstar has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, Netlist has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

About Qualstar

Qualstar Corporation engages in power solutions and data storage systems businesses worldwide. The company operates through two segments, Power Solutions and Data Storage Systems. It provides data storage systems under the Qualstar brand and power solutions under the N2Power brand. The company designs, manufactures, and sells switching power supplies that are used to convert AC line voltage to DC voltages; or DC voltages to other DC voltages for use in various electronic equipment, such as telecommunications equipment, machine tools, routers, switches, wireless systems, and gaming devices. It also supports and sells data storage devices used to store, retrieve, and manage electronic data primarily in network computing environments. The company serves original equipment manufacturers, information technology departments, and lower and middle market companies through distributor and reseller network, distributors, and independent outside sales representatives. Qualstar Corporation was founded in 1984 and is based in Camarillo, California.

About Netlist

Netlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. The company portfolio of proprietary technologies and design techniques, includes efficient planar design, alternative packaging techniques, and custom semiconductor logic, to deliver memory subsystems; and sells specialty memory modules and flash-based products for use in data center and industrial applications. It resells component products, including solid state drive (SSD), NAND flash, and dual inline memory module (DIMM) to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.