Analyzing inTEST (NYSE:INTT) and QuickLogic (NASDAQ:QUIK)

QuickLogic (NASDAQ:QUIK) and inTEST (NYSE:INTT) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuickLogic	N/A	N/A	N/A
inTEST	2.33%	5.31%	3.42%

Insider & Institutional Ownership

31.5% of QuickLogic shares are owned by institutional investors. Comparatively, 63.2% of inTEST shares are owned by institutional investors. 3.2% of QuickLogic shares are owned by insiders. Comparatively, 5.2% of inTEST shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for QuickLogic and inTEST, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuickLogic	1	1	2	0	2.25
inTEST	0	1	2	0	2.67

QuickLogic presently has a consensus target price of $21.00, indicating a potential upside of 122.69%. inTEST has a consensus target price of $18.00, indicating a potential upside of 17.19%. Given QuickLogic’s higher possible upside, equities analysts plainly believe QuickLogic is more favorable than inTEST.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuickLogic	$16.30 million	10.60	-$14.10 million	($0.77)	-12.25
inTEST	$128.26 million	1.54	$9.34 million	$0.12	128.00

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

Risk & Volatility

QuickLogic has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, inTEST has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Summary

inTEST beats QuickLogic on 11 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 inTEST

inTEST Corporation provides test and process technology solutions for use in manufacturing and testing in automotive, defense/aerospace, industrial, life sciences, security, and semiconductor markets worldwide. The company operates through three segments: Electronic Test, Environmental Technologies, and Process Technologies. The Electronic Test segment offers in2, Cobal, and LS series manipulators that hold various test heads and enable an operator to reposition a test head for alternate use with various probers or handlers on a test floor; and docking hardware products, which protect the interface contacts and ensure proper repeatable and precise alignment between the test head’s interface board and the prober’s probing assembly. This segment also provides tester interfaces that offer electrical connections between the tester and the wafer prober or IC handler; scorpion flying probe test systems that designs and manufactures robotics-based electronic test equipment; and BRiZ automated test and programming services. Its products are used in production testing of wafers and specialized packaged ICs in back-end testing by semiconductor manufacturers. The Environmental Technologies segment provides ThermoStream products that are used in the semi market as a stand-alone temperature management tool, or in various electronic test applications; thermal chambers; thermal platforms; Thermonics temperature conditioning products that offer tempered gas or fluid; and ultra-cold storage solutions, including biomedical freezers, refrigerators, and mobile storage solutions. The Process Technologies segment offers EKOHEAT and EASYHEAT induction heating systems; and digital streaming and image capturing solutions. The company markets and sells its products to semiconductor manufacturers, third-party foundries, test and assembly providers, and original equipment manufacturers. inTEST Corporation was incorporated in 1981 and is headquartered in Mount Laurel, New Jersey.