Critical Comparison: Cabot Microelectronics (NASDAQ:CCMP) & Summit Wireless Technologies (NASDAQ:WISA)

Cabot Microelectronics (NASDAQ:CCMP) and Summit Wireless Technologies (NASDAQ:WISA) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cabot Microelectronics and Summit Wireless Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Microelectronics 1 3 3 0 2.29
Summit Wireless Technologies 0 0 1 0 3.00

Cabot Microelectronics presently has a consensus price target of $145.00, suggesting a potential upside of 41.41%. Summit Wireless Technologies has a consensus price target of $3.00, suggesting a potential upside of 936.27%. Given Summit Wireless Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Summit Wireless Technologies is more favorable than Cabot Microelectronics.

Valuation and Earnings

This table compares Cabot Microelectronics and Summit Wireless Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cabot Microelectronics $1.04 billion 2.89 $39.22 million $6.72 15.26
Summit Wireless Technologies $1.37 million 5.65 -$67.36 million N/A N/A

Cabot Microelectronics has higher revenue and earnings than Summit Wireless Technologies.

Profitability

This table compares Cabot Microelectronics and Summit Wireless Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabot Microelectronics 5.85% 19.66% 8.66%
Summit Wireless Technologies -694.31% -462.87% -241.61%

Volatility and Risk

Cabot Microelectronics has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Summit Wireless Technologies has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.

Institutional & Insider Ownership

99.5% of Cabot Microelectronics shares are held by institutional investors. Comparatively, 1.4% of Summit Wireless Technologies shares are held by institutional investors. 2.4% of Cabot Microelectronics shares are held by insiders. Comparatively, 6.4% of Summit Wireless Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Cabot Microelectronics beats Summit Wireless Technologies on 8 of the 12 factors compared between the two stocks.

Cabot Microelectronics Company Profile

Cabot Microelectronics Corp. engages in the development, manufacture, and sale of chemical mechanical planarization consumables products. The firm offers chemical mechanical planarization slurries for polishing many of the conducting, insulating and isolating materials used in integrated circuit devices, and for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells chemical mechanical planarization polishing pads, which are used in conjunction with slurries in the chemical mechanical planarization process. The company was founded by William P. Noglows in October 1999 and is headquartered in Aurora, IL.

Summit Wireless Technologies Company Profile

Summit Wireless Technologies, Inc. develops wireless audio integrated circuits for home entertainment and professional audio markets in the United States, Europe, and the Asia Pacific. The company offers TX modules for TVs, AV receivers, media hubs, and small dongles that connect through USB or HDMI ports; and speaker systems. The company has a strategic partnership with THX Ltd. to develop wireless sound technology for gaming, Esports, and home entertainment. The company was formerly known as Summit Semiconductor, Inc. and changed its name to Summit Wireless Technologies, Inc. in September 2018. Summit Semiconductor, Inc. was founded in 2010 and is headquartered in San Jose, California.

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