Home > Comparison > Technology > ASML vs CRUS
The strategic rivalry between ASML Holding N.V. and Cirrus Logic, Inc. defines the current trajectory of the semiconductor industry. ASML operates as a capital-intensive leader in advanced lithography equipment, essential for chip manufacturing. Cirrus Logic, a fabless provider, focuses on high-precision mixed-signal processing solutions with strong audio expertise. This analysis contrasts their distinct business models to identify which offers superior risk-adjusted returns for a diversified technology portfolio.
Table of contents
Companies Overview
ASML Holding N.V. and Cirrus Logic, Inc. stand as pivotal players in the semiconductor industry, each commanding unique market niches and technological expertise.
ASML Holding N.V.: Advanced Semiconductor Equipment Leader
ASML dominates the semiconductor equipment sector, generating revenue primarily from lithography systems used by chipmakers worldwide. Its strategic focus in 2026 centers on expanding its extreme ultraviolet lithography systems, crucial for manufacturing advanced semiconductor nodes. ASML’s competitive edge lies in its cutting-edge technology, servicing top-tier global semiconductor manufacturers.
Cirrus Logic, Inc.: Specialist in Mixed-Signal Processing
Cirrus Logic specializes in fabless semiconductor solutions, focusing on low-power, high-precision mixed-signal processors. It earns revenue by supplying audio and power management ICs for consumer electronics like smartphones and AR/VR devices. In 2026, Cirrus prioritizes innovation in SoundClear technology to enhance audio experiences, leveraging its niche in portable and industrial applications.
Strategic Collision: Similarities & Divergences
Both companies operate within the semiconductor technology sector, yet ASML’s strategy revolves around complex equipment manufacturing, while Cirrus Logic emphasizes integrated circuit design. Their primary battleground is technological innovation, with ASML pushing hardware breakthroughs and Cirrus focusing on embedded audio and power solutions. Investors face distinct profiles: ASML offers capital-intensive scale and market dominance, Cirrus presents specialized growth in niche markets.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | ASML Holding N.V. (ASML) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Revenue | 31.4B EUR | 1.9B USD |
| Cost of Revenue | 14.8B EUR | 900M USD |
| Operating Expenses | 5.7B EUR | 586M USD |
| Gross Profit | 16.6B EUR | 996M USD |
| EBITDA | 11.9B EUR | 497M USD |
| EBIT | 11.0B EUR | 445M USD |
| Interest Expense | 0 EUR | 0.9M USD |
| Net Income | 9.2B EUR | 332M USD |
| EPS | 23.76 EUR | 6.24 USD |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
The income statement comparison reveals which company runs a more efficient and profitable corporate engine through revenue and margin dynamics.
ASML Holding N.V. Analysis
ASML’s revenue grew from 18.6B EUR in 2021 to 31.4B EUR in 2025, a 68.6% rise, with net income climbing 56.9% to 9.2B EUR. It maintains robust gross margins near 53% and net margins close to 29.4%, reflecting strong cost control. The latest year shows accelerating EBIT growth of 19%, signaling efficient margin expansion and operational momentum.
Cirrus Logic, Inc. Analysis
Cirrus Logic increased revenue from 1.37B USD in 2021 to 1.9B USD in 2025, a 38.5% gain, while net income jumped 52.5% to 331M USD. Gross margin holds steady around 52.5%, but net margin is lower at 17.5%. EBIT surged 22% last year, indicating improving operational leverage and profitability momentum despite a smaller scale.
Margin Mastery vs. Growth Scale
ASML outpaces Cirrus Logic in absolute revenue and net income by a wide margin, with stronger net margins and higher EBIT profitability. ASML’s scale and margin expansion provide a clear fundamental advantage. For investors, ASML represents a mature, high-margin growth profile, while Cirrus offers a smaller but improving business with solid margin consistency.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | ASML Holding N.V. (ASML) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| ROE | 47.1% | 17.0% |
| ROIC | 34.1% | 14.2% |
| P/E | 38.3x | 15.9x |
| P/B | 18.0x | 2.71x |
| Current Ratio | 1.26 | 6.35 |
| Quick Ratio | 0.79 | 4.82 |
| D/E | 0.14 | 0.07 |
| Debt-to-Assets | 5.4% | 6.2% |
| Interest Coverage | 56.2x | 457x |
| Asset Turnover | 0.62 | 0.81 |
| Fixed Asset Turnover | 3.81 | 6.62 |
| Payout ratio | 26.5% | 0% |
| Dividend yield | 0.69% | 0% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, uncovering hidden risks and operational strengths crucial for informed investment decisions.
ASML Holding N.V.
ASML posts a robust 47.1% ROE and a strong 29.4% net margin, reflecting superior profitability. However, its 38.3 P/E and 18.1 P/B ratios indicate a stretched valuation. The 0.69% dividend yield suggests modest shareholder returns, with substantial reinvestment into R&D fueling growth and innovation.
Cirrus Logic, Inc.
Cirrus Logic exhibits decent profitability, with a 17.0% ROE and 17.5% net margin. Its valuation is more moderate, featuring a 15.9 P/E and 2.7 P/B, signaling reasonable pricing. The company pays no dividend, favoring reinvestment into R&D to support future expansion and operational efficiency.
Premium Valuation vs. Operational Safety
ASML commands a premium valuation due to exceptional profitability and innovation focus, while Cirrus Logic offers a more balanced valuation with solid efficiency. ASML suits investors seeking high growth with valuation risk; Cirrus fits those prioritizing steadier operational metrics and valuation discipline.
Which one offers the Superior Shareholder Reward?
I see ASML Holding N.V. pays a modest dividend yield of around 0.97% with a payout ratio near 27%. It supports dividends with strong free cash flow, covering payouts over 3x, and maintains a disciplined buyback program. Cirrus Logic, Inc. pays no dividend but channels free cash flow into growth and share buybacks, boasting a low price-to-free-cash-flow ratio near 13, signaling attractive valuation and aggressive capital return. ASML’s dividend and buybacks provide steady income and capital return, while Cirrus’s reinvestment and buybacks fuel growth without dividend drag. Given ASML’s sustainable dividend backed by robust cash flow and moderate leverage, I find ASML offers a more balanced and reliable total shareholder return in 2026 compared to Cirrus’s growth-focused but dividend-absent model.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of ASML Holding N.V. and Cirrus Logic, Inc., highlighting their financial and valuation strengths:
ASML shows exceptional profitability with top ROE and ROA scores of 5, but weaker valuation metrics (PE 2, PB 1). Cirrus Logic presents a more balanced profile with solid DCF (4), ROE (4), and valuation scores (PE 3, PB 3). ASML relies on operational excellence, while Cirrus offers a steadier valuation appeal.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Scores of ASML (12.42) and Cirrus Logic (12.44) both place them securely in the safe zone, signaling very low bankruptcy risk amid current market cycles:
Financial Health: Quality of Operations
ASML’s Piotroski F-Score of 8 outperforms Cirrus Logic’s 7, indicating slightly stronger internal financial health and operational quality, with no red flags detected in either firm:
How are the two companies positioned?
This section dissects ASML and Cirrus Logic’s operational DNA by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and reveal which model offers the most resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how ASML Holding N.V. and Cirrus Logic, Inc. diversify their income streams and where their primary sector bets lie:
ASML’s revenue anchors heavily in Arf immersion at $9.67B and NXE at $7.86B, showing focused dominance in semiconductor lithography. Service and field options also bolster $6.49B, adding recurring income. Cirrus Logic splits between Portable Audio Products at $1.14B and High-Performance Mixed Signal Products at $759M, reflecting a more balanced but smaller scale portfolio. ASML’s concentration signals infrastructure dominance but entails sector cyclicality risk. Cirrus’s mix offers moderate diversification, reducing single-segment dependency.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of ASML Holding N.V. and Cirrus Logic, Inc.:
ASML Strengths
- High net margin at 29.42%
- Strong ROE of 47.08%
- Favorable ROIC at 34.14%
- Low debt-to-assets at 5.36%
- Broad global presence with significant revenue from China and Korea
CRUS Strengths
- Favorable net margin at 17.48%
- Positive ROE of 17.01%
- Favorable ROIC at 14.2%
- Strong quick ratio at 4.82
- Low debt-to-assets at 6.18%
- Favorable fixed asset turnover at 6.62
ASML Weaknesses
- Unfavorable WACC at 10.08% surpassing ROIC benchmark
- High PE of 38.33 and PB of 18.05 indicating rich valuation
- Quick ratio below 1 at 0.79
- Dividend yield low at 0.69%
- Asset turnover moderate at 0.62
CRUS Weaknesses
- Current ratio very high at 6.35, indicating inefficient asset use
- Zero dividend yield
- Moderate PE of 15.95 and PB of 2.71
- Lower market diversification with concentration in two product segments
Both companies show financial strengths with favorable profitability and low leverage. ASML’s valuation multiples and working capital metrics warrant caution. CRUS excels in liquidity but may face challenges from product concentration and inefficient asset deployment. These factors shape each firm’s strategic focus on innovation, capital efficiency, and market expansion.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat alone shields long-term profits from relentless competitive erosion, ensuring sustainable value creation and market power:
ASML Holding N.V.: Technological Intellectual Property Fortress
ASML dominates with a cost and technology moat rooted in extreme ultraviolet lithography patents. Its 24% ROIC premium over WACC signals robust value creation. Expansion in next-gen chip manufacturing deepens this lead in 2026.
Cirrus Logic, Inc.: Niche Integration and Signal Processing Edge
Cirrus Logic carves a switching cost moat through specialized mixed-signal processing ICs for audio markets. Its 5.4% ROIC spread over WACC affirms value creation but remains narrower than ASML’s. Growth in automotive and industrial audio offers upside.
Moat Scale: Advanced Lithography Monopoly vs. Specialized Audio Solutions
ASML’s moat is both wider and deeper, driven by critical, hard-to-replicate technology and scale advantages. Cirrus Logic’s niche strength is solid but more vulnerable to commoditization. ASML is better positioned to defend and expand its market share in 2026.
Which stock offers better returns?
Over the past 12 months, ASML Holding N.V. and Cirrus Logic, Inc. displayed strong bullish trends with significant price appreciation and buyer dominance, reflecting active trading dynamics and accelerating momentum.
Trend Comparison
ASML Holding N.V. shows a 43.11% price increase over the past year with accelerating momentum and high volatility, reaching a peak of 1423.0 and a low of 605.55.
Cirrus Logic, Inc. gained 40.89% over the same period, also accelerating but with much lower volatility, hitting a high of 145.69 and a low of 82.02.
ASML outperformed Cirrus Logic by a narrow margin, delivering the highest market returns with more pronounced price swings and stronger acceleration.
Target Prices
Analysts present a confident target consensus for ASML Holding N.V. and Cirrus Logic, Inc., reflecting solid upside potential.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| ASML Holding N.V. | 1150 | 1911 | 1458.5 |
| Cirrus Logic, Inc. | 100 | 155 | 138.75 |
The ASML consensus target of 1458.5 slightly exceeds its current price of 1423, signaling moderate upside. Cirrus Logic’s target consensus of 138.75 also suggests a modest premium over its current 130.34 price, indicating measured optimism among analysts.
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How do institutions grade them?
The following tables summarize recent institutional grades for ASML Holding N.V. and Cirrus Logic, Inc.:
ASML Holding N.V. Grades
This table shows the most recent grades and actions from major grading firms for ASML Holding N.V.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Upgrade | Overweight | 2026-01-29 |
| Wells Fargo | Maintain | Overweight | 2026-01-29 |
| RBC Capital | Maintain | Outperform | 2026-01-29 |
| Bernstein | Maintain | Outperform | 2026-01-22 |
| KGI Securities | Upgrade | Outperform | 2026-01-15 |
| Wells Fargo | Maintain | Overweight | 2026-01-15 |
| JP Morgan | Maintain | Overweight | 2026-01-14 |
| Bernstein | Upgrade | Outperform | 2026-01-05 |
| B of A Securities | Maintain | Buy | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-12-01 |
Cirrus Logic, Inc. Grades
This table shows the most recent grades and actions from major grading firms for Cirrus Logic, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Benchmark | Maintain | Buy | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-05-07 |
| Barclays | Maintain | Equal Weight | 2025-04-22 |
| Stifel | Maintain | Buy | 2025-04-17 |
Which company has the best grades?
ASML Holding N.V. consistently receives higher grades such as Outperform and Overweight, with multiple recent upgrades. Cirrus Logic, Inc. mostly holds Buy or Equal Weight ratings without recent upgrades. ASML’s stronger grades may signal greater institutional confidence, potentially affecting investor sentiment and valuation positively.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing ASML Holding N.V. and Cirrus Logic, Inc. in the 2026 market environment:
1. Market & Competition
ASML Holding N.V.
- Dominates advanced lithography with high barriers but faces intense semiconductor equipment competition.
Cirrus Logic, Inc.
- Competes in mixed-signal processing with niche focus but limited scale versus larger peers.
2. Capital Structure & Debt
ASML Holding N.V.
- Low debt-to-equity (0.14) and debt-to-assets (5.36%) show conservative leverage and strong interest coverage.
Cirrus Logic, Inc.
- Even lower leverage (D/E 0.07) and robust interest coverage signal excellent financial stability.
3. Stock Volatility
ASML Holding N.V.
- Beta of 1.34 indicates above-market volatility, reflecting sensitivity to tech cycles.
Cirrus Logic, Inc.
- Lower beta at 1.08 suggests more stable price movements amid sector fluctuations.
4. Regulatory & Legal
ASML Holding N.V.
- Exposure to export controls and IP litigation in global semiconductor markets.
Cirrus Logic, Inc.
- Faces regulatory scrutiny related to product safety and international trade but less complex globally.
5. Supply Chain & Operations
ASML Holding N.V.
- Complex global supply chain vulnerable to geopolitical tensions and component shortages.
Cirrus Logic, Inc.
- Smaller scale supply chain with some exposure to industrial component risks but more agility.
6. ESG & Climate Transition
ASML Holding N.V.
- Faces pressure to reduce environmental impact in manufacturing and energy use.
Cirrus Logic, Inc.
- Growing focus on sustainable product design and energy efficiency in industrial applications.
7. Geopolitical Exposure
ASML Holding N.V.
- High exposure to Asia-Pacific tensions, particularly US-China trade conflicts affecting sales.
Cirrus Logic, Inc.
- Moderate geopolitical risks concentrated in US and broader industrial markets.
Which company shows a better risk-adjusted profile?
ASML’s most impactful risk is its stock volatility and geopolitical exposure, which could disrupt its complex supply chain. Cirrus Logic’s primary risk lies in its market niche and competitive scale limitations. Cirrus Logic shows a better risk-adjusted profile, supported by stronger leverage metrics and lower stock volatility, signaling more stable operational footing in 2026.
Final Verdict: Which stock to choose?
ASML’s superpower lies in its commanding technological moat and exceptional capital efficiency. It consistently generates returns well above its cost of capital, signaling durable value creation. A point of vigilance remains its elevated valuation multiples, which could pressure future gains. This stock suits portfolios targeting long-term aggressive growth with a tolerance for premium pricing.
Cirrus Logic impresses with its focused niche in audio semiconductor solutions and a solid balance sheet that offers relative safety. Its moderate valuation and strong free cash flow yield create a compelling risk-adjusted profile. Cirrus fits well for investors seeking growth at a reasonable price, blending steady expansion with financial prudence.
If you prioritize capturing outsized returns from a dominant market leader, ASML outshines due to its robust innovation moat and superior profitability. However, if you seek a more balanced risk-return profile with a focus on capital preservation, Cirrus offers better stability and attractive valuation. Both present viable analytical scenarios depending on your portfolio’s strategic needs.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of ASML Holding N.V. and Cirrus Logic, Inc. to enhance your investment decisions:
