In the rapidly evolving semiconductor industry, Qnity Electronics, Inc. and Cirrus Logic, Inc. stand out as innovative players with distinct approaches. Qnity specializes in advanced materials for chip manufacturing, while Cirrus Logic focuses on mixed-signal processing solutions for audio and industrial applications. Both companies compete in technology-driven markets with overlapping customer bases. This article will help you decide which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Qnity Electronics, Inc. and Cirrus Logic, Inc. by providing an overview of these two companies and their main differences.
Qnity Electronics Overview
Qnity Electronics, Inc. specializes in electronic solutions and materials essential for semiconductor chip manufacturing and advanced electronic materials. Formerly known as Novus SpinCo 1, Inc., it rebranded to Qnity Electronics in April 2025. The company is positioned within the semiconductor industry and operates mainly from Wilmington, Delaware, focusing on supplying critical components to semiconductor manufacturers.
Cirrus Logic Overview
Cirrus Logic, Inc. is a fabless semiconductor company that designs and markets low-power, high-precision mixed-signal processing solutions globally. Its products include audio codecs, boosted amplifiers, digital signal processors, and advanced SoundClear technology used in consumer electronics such as smartphones and automotive systems. Headquartered in Austin, Texas, Cirrus Logic serves various markets including portable devices, industrial applications, and energy sectors.
Key similarities and differences
Both companies operate within the semiconductor sector, focusing on advanced electronic components. Qnity Electronics provides materials and solutions for semiconductor manufacturing, whereas Cirrus Logic designs integrated circuits and mixed-signal processing products for consumer electronics and industrial applications. While Qnity is a newer entity with a focus on manufacturing inputs, Cirrus Logic is an established fabless company with a diversified product portfolio targeting audio and energy markets.
Income Statement Comparison
The table below contrasts key income statement metrics for Qnity Electronics, Inc. and Cirrus Logic, Inc. for their most recent fiscal years, providing a snapshot of their financial performance.
| Metric | Qnity Electronics, Inc. (Q) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Market Cap | 19.5B | 6.29B |
| Revenue | 4.34B | 1.90B |
| EBITDA | 1.29B | 497M |
| EBIT | 898M | 445M |
| Net Income | 693M | 332M |
| EPS | 3.31 | 6.24 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Qnity Electronics, Inc.
Qnity Electronics experienced a mixed trend from 2022 to 2024, with revenues declining overall by 8.83% but showing a modest 7.43% increase in the latest year. Net income also fell by 10.47% over the full period but rose 36.69% recently, with net margin slipping slightly overall. The 2024 performance showed improved margins and strong EBIT growth, signaling operational efficiency gains despite revenue challenges.
Cirrus Logic, Inc.
Cirrus Logic showed consistent revenue growth, expanding 38.48% from 2021 to 2025 and 5.99% in the most recent year. Net income increased substantially by 52.53% over the period, with a 13.91% net margin improvement recently. The company maintained favorable gross and EBIT margins, with the latest year highlighting solid profit expansion alongside steady revenue gains and disciplined expense management.
Which one has the stronger fundamentals?
Cirrus Logic demonstrates stronger fundamentals, with favorable trends across all income statement metrics including consistent revenue and net income growth over the long term. Qnity Electronics shows recent improvements but faces overall declines in revenue and profits. Cirrus Logic’s superior margin stability, growth consistency, and lower interest expense contribute to a more robust financial profile.
Financial Ratios Comparison
The table below presents the most recent financial ratios for Qnity Electronics, Inc. and Cirrus Logic, Inc., reflecting their operational efficiency, profitability, liquidity, leverage, and shareholder returns as of fiscal year-end 2024 and 2025 respectively.
| Ratios | Qnity Electronics, Inc. (Q) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| ROE | 6.51% | 17.01% |
| ROIC | 5.92% | 14.20% |
| P/E | 28.8 | 15.95 |
| P/B | 1.88 | 2.71 |
| Current Ratio | 1.77 | 6.35 |
| Quick Ratio | 1.06 | 4.82 |
| D/E | 0.018 | 0.074 |
| Debt-to-Assets | 1.56% | 6.18% |
| Interest Coverage | 3.03 | 457 |
| Asset Turnover | 0.35 | 0.81 |
| Fixed Asset Turnover | 2.59 | 6.62 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Qnity Electronics, Inc.
Qnity Electronics shows a slightly favorable ratio profile with strong net margin (15.99%) and low debt levels, indicating financial stability. However, its return on equity (6.51%) and price-to-earnings ratio (28.8) are less encouraging, suggesting limited profitability and high valuation. Qnity pays a small dividend with no significant yield, reflecting cautious shareholder returns and potential risks in distribution sustainability.
Cirrus Logic, Inc.
Cirrus Logic presents a favorable ratio set, with strong returns on equity (17.01%) and invested capital (14.2%), supported by excellent interest coverage (495.45) and manageable debt. The company does not pay dividends, likely prioritizing reinvestment and growth, consistent with its robust research and development spending. The absence of dividend yield aligns with its growth-focused capital allocation strategy.
Which one has the best ratios?
Cirrus Logic exhibits a more favorable overall ratio profile with higher profitability, efficient capital use, and stronger coverage ratios. Qnity Electronics, while financially stable, shows weaker returns and valuation concerns. The difference in dividend policy also reflects distinct corporate strategies, with Cirrus focusing on growth and Qnity on cautious returns.
Strategic Positioning
This section compares the strategic positioning of Qnity Electronics, Inc. (Q) and Cirrus Logic, Inc. (CRUS) based on Market position, Key segments, and Exposure to technological disruption:
Q
- Market cap of 19.5B with no beta; faces stable competition in semiconductors
- Focuses on electronic solutions and materials for semiconductor chip manufacturing
- No explicit data on technological disruption exposure
CRUS
- Market cap of 6.3B with beta 1.08; operates in a competitive fabless semiconductor market
- Key segments include portable audio and high-performance mixed signal products driving revenue
- Offers advanced mixed-signal and audio processing products, integrating innovative technologies
Q vs CRUS Positioning
Q has a concentrated focus on semiconductor materials and solutions, while CRUS diversifies with portable audio and mixed-signal products. Q’s stable market position contrasts with CRUS’s innovation-driven, broader product portfolio.
Which has the best competitive advantage?
CRUS shows a very favorable moat with growing ROIC and durable competitive advantage, while Q has a neutral moat status with stable but no clear competitive edge.
Stock Comparison
Over the past year, Qnity Electronics, Inc. exhibited a slight bearish trend with marginal price decline, while Cirrus Logic, Inc. demonstrated strong bullish momentum despite recent deceleration and a short-term price drop.
Trend Analysis
Qnity Electronics, Inc. experienced a -1.98% price change over the past 12 months, indicating a neutral to mildly bearish trend with stable acceleration and price oscillating between 75.8 and 95.0.
Cirrus Logic, Inc. posted a robust 34.06% gain over the same period, reflecting a bullish trend despite recent deceleration and a -7.06% decline in the last months, with higher volatility noted.
Comparatively, Cirrus Logic, Inc. delivered the highest market performance with significant price appreciation, whereas Qnity Electronics, Inc. showed a near-neutral trend with slight downward pressure.
Target Prices
The current analyst consensus indicates promising upside potential for these semiconductor companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Qnity Electronics, Inc. | 117 | 92 | 105.89 |
| Cirrus Logic, Inc. | 155 | 100 | 138.75 |
Analysts expect Qnity Electronics to rise moderately above its current price of 93.12 USD, while Cirrus Logic shows a strong upside potential from 123.28 USD consensus target.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Qnity Electronics, Inc. (Q) and Cirrus Logic, Inc. (CRUS):
Rating Comparison
Q Rating
- Rating: B+ indicating a very favorable status.
- Discounted Cash Flow Score: 4, showing favorable valuation based on future cash flow projections.
- Return on Equity Score: 3, reflecting moderate efficiency in generating profit from shareholders’ equity.
- Return on Assets Score: 4, indicating favorable effectiveness in asset utilization to generate earnings.
- Debt To Equity Score: 3, showing moderate financial risk with balanced debt levels.
- Overall Score: 3, suggesting a moderate overall financial standing.
CRUS Rating
- Rating: A- indicating a very favorable status.
- Discounted Cash Flow Score: 4, also favorable for valuation based on future cash flow projections.
- Return on Equity Score: 4, demonstrating favorable profit generation efficiency from shareholders’ equity.
- Return on Assets Score: 5, representing very favorable asset utilization efficiency.
- Debt To Equity Score: 3, also indicating moderate financial risk with similar debt levels.
- Overall Score: 4, reflecting a favorable overall financial standing.
Which one is the best rated?
Cirrus Logic (CRUS) is better rated overall with an A- rating and higher scores in return on equity, return on assets, and overall financial standing compared to Qnity Electronics (Q), which holds a B+ rating and moderate scores.
Scores Comparison
Here is the comparison of the Altman Z-Score and Piotroski Score for the two companies:
Q Scores
- No available data on Altman Z-Score for Q.
- No available data on Piotroski Score for Q.
CRUS Scores
- Altman Z-Score is 11.94, indicating a safe zone.
- Piotroski Score is 7, classified as strong.
Which company has the best scores?
Based on the provided data, only Cirrus Logic (CRUS) has available scores, showing a very high Altman Z-Score and a strong Piotroski Score. No scores are available for Qnity Electronics (Q).
Grades Comparison
Here is a comparison of the most recent grades assigned by reputable grading companies for the two companies:
Qnity Electronics, Inc. Grades
The following table presents the latest grades from reliable grading firms for Qnity Electronics, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Outperform | 2025-11-25 |
| Mizuho | Maintain | Outperform | 2025-11-20 |
Qnity Electronics has consistently received “Outperform” ratings, indicating a positive outlook from grading firms.
Cirrus Logic, Inc. Grades
The following table presents the latest grades from reliable 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 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Benchmark | 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 |
Cirrus Logic’s grades predominantly indicate a “Buy” or “Overweight” stance, with some “Equal Weight” ratings, reflecting a generally favorable, though somewhat mixed, sentiment.
Which company has the best grades?
Both companies hold a “Buy” consensus, but Qnity Electronics has uniformly strong “Outperform” ratings from two firms, while Cirrus Logic shows a broader range of mostly positive but mixed grades. Investors might interpret Qnity’s consistent outperform ratings as a clearer bullish signal, whereas Cirrus Logic’s mixed ratings suggest a more cautious optimism.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Qnity Electronics, Inc. (Q) and Cirrus Logic, Inc. (CRUS) based on their latest financial and operational data.
| Criterion | Qnity Electronics, Inc. (Q) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Diversification | Limited diversification; focused product range | Moderate diversification; strong in audio and mixed signal products |
| Profitability | Moderate net margin (16%) but low ROE (6.5%) | Strong net margin (17.5%) and ROE (17%) |
| Innovation | Stable ROIC, no clear competitive advantage | Growing ROIC and strong innovation in audio tech |
| Global presence | Stable but no clear moat or global edge | Durable competitive advantage with global reach |
| Market Share | Stable but no significant growth in value | Increasing market share in high-performance audio segments |
Key takeaway: Cirrus Logic shows stronger profitability, innovation, and a durable competitive moat, making it a more attractive investment option currently. Qnity Electronics maintains stability but lacks clear competitive advantages and value creation.
Risk Analysis
Below is a comparison of key risks for Qnity Electronics, Inc. (Q) and Cirrus Logic, Inc. (CRUS) based on their latest financial and operational data.
| Metric | Qnity Electronics, Inc. (Q) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Market Risk | Moderate (beta 0, lower volatility but new IPO risk) | Moderate-High (beta 1.08, more sensitivity to market swings) |
| Debt level | Very Low (D/E 0.02, debt to assets 1.56%) | Low (D/E 0.07, debt to assets 6.18%) |
| Regulatory Risk | Moderate (semiconductor industry, US-based) | Moderate (fabless semiconductor, global supply chain exposure) |
| Operational Risk | Moderate (newly rebranded company, growth phase) | Moderate-Low (established with strong operational efficiency) |
| Environmental Risk | Low (standard semiconductor manufacturing materials) | Low (focus on fabless design reduces direct environmental impact) |
| Geopolitical Risk | Moderate (US operations, semiconductor supply chain vulnerable) | Moderate (global sales and supply chain dependencies) |
Q faces moderate market risk due to its recent IPO and rebranding, though it benefits from very low debt, indicating financial stability. CRUS shows stronger profitability and operational efficiency but is more exposed to market volatility and global supply chain risks. Geopolitical and regulatory risks remain relevant for both, given the semiconductor sector’s sensitivity to trade policies and global tensions. Investors should weigh Q’s growth potential against CRUS’s established performance and higher market beta.
Which Stock to Choose?
Qnity Electronics, Inc. (Q) shows a stable income with favorable gross and net margins, though its revenue and net income declined overall since 2022. Financial ratios are slightly favorable with low debt levels and a moderate rating of B+. Profitability is modest, and the company shows neutral value creation with no clear competitive moat.
Cirrus Logic, Inc. (CRUS) presents strong income growth and higher profitability metrics, including favorable net margins and expanding earnings. Its financial ratios are favorable overall, supported by very low debt and a strong A- rating. The company demonstrates a durable competitive advantage with growing ROIC above WACC, indicating solid value creation.
Considering ratings and financial performance, CRUS might appear more attractive for investors seeking growth and strong profitability, while Q could appeal to those valuing stability and moderate risk exposure. The choice could depend on an investor’s risk tolerance and strategy focus.
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 Qnity Electronics, Inc. and Cirrus Logic, Inc. to enhance your investment decisions:
