Contrasting Coda Octopus Group (NASDAQ:CODA) and Cirrus Logic (NASDAQ:CRUS)

Cirrus Logic (NASDAQ:CRUS) and Coda Octopus Group (NASDAQ:CODA) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Cirrus Logic has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cirrus Logic	20.47%	20.41%	17.22%
Coda Octopus Group	14.78%	7.17%	6.57%

Insider & Institutional Ownership

88.0% of Cirrus Logic shares are held by institutional investors. Comparatively, 20.1% of Coda Octopus Group shares are held by institutional investors. 1.2% of Cirrus Logic shares are held by insiders. Comparatively, 21.8% of Coda Octopus Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Cirrus Logic and Coda Octopus Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cirrus Logic	0	3	4	1	2.75
Coda Octopus Group	0	1	1	0	2.50

Cirrus Logic presently has a consensus target price of $152.14, suggesting a potential downside of 10.45%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, analysts plainly believe Cirrus Logic is more favorable than Coda Octopus Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cirrus Logic	$1.90 billion	4.57	$331.51 million	$7.59	22.38
Coda Octopus Group	$28.06 million	4.85	$4.13 million	$0.36	33.50

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

Summary

Cirrus Logic beats Coda Octopus Group on 12 of the 15 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 Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.