Quotient Technology (NYSE:QUOT) and CMC Materials (NASDAQ:CCMP) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Analyst Ratings
This is a summary of recent recommendations and price targets for Quotient Technology and CMC Materials, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Quotient Technology | 1 | 0 | 2 | 0 | 2.33 |
| CMC Materials | 2 | 4 | 2 | 0 | 2.00 |
Quotient Technology presently has a consensus target price of $8.90, suggesting a potential downside of 26.93%. CMC Materials has a consensus target price of $155.2857, suggesting a potential upside of 1.41%. Given CMC Materials' higher possible upside, analysts clearly believe CMC Materials is more favorable than Quotient Technology.
Insider & Institutional Ownership
70.5% of Quotient Technology shares are owned by institutional investors. Comparatively, 87.2% of CMC Materials shares are owned by institutional investors. 10.0% of Quotient Technology shares are owned by insiders. Comparatively, 2.4% of CMC Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Quotient Technology and CMC Materials' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Quotient Technology | -11.77% | -17.49% | -8.44% |
| CMC Materials | 12.79% | 21.30% | 9.14% |
Volatility & Risk
Quotient Technology has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, CMC Materials has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
Valuation & Earnings
This table compares Quotient Technology and CMC Materials' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Quotient Technology | $436.16 million | 2.61 | $-37,060,000.00 | ($0.34) | -35.82 |
| CMC Materials | $1.12 billion | 4.00 | $142.83 million | $7.47 | 20.50 |
CMC Materials has higher revenue and earnings than Quotient Technology. Quotient Technology is trading at a lower price-to-earnings ratio than CMC Materials, indicating that it is currently the more affordable of the two stocks.
Summary
CMC Materials beats Quotient Technology on 11 of the 13 factors compared between the two stocks.
