Audience (NASDAQ: ADNC) and QUALCOMM (NASDAQ:QCOM) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Audience and QUALCOMM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Audience -95.17% -78.59% -64.91%
QUALCOMM 17.26% 19.64% 10.95%

Earnings and Valuation

This table compares Audience and QUALCOMM’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Audience N/A N/A N/A N/A N/A
QUALCOMM $22.57 billion 3.40 $7.15 billion $2.61 19.94

QUALCOMM has higher revenue and earnings than Audience.

Insider and Institutional Ownership

77.1% of QUALCOMM shares are held by institutional investors. 0.2% of QUALCOMM shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Audience and QUALCOMM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Audience 0 0 0 0 N/A
QUALCOMM 1 16 10 0 2.33

QUALCOMM has a consensus target price of $64.27, suggesting a potential upside of 23.48%. Given QUALCOMM’s higher possible upside, analysts plainly believe QUALCOMM is more favorable than Audience.

Dividends

QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 4.4%. Audience does not pay a dividend. QUALCOMM pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Audience has increased its dividend for 6 consecutive years.

Summary

QUALCOMM beats Audience on 9 of the 11 factors compared between the two stocks.

About Audience

Audience, Inc. is a provider of voice and audio solutions that improve voice quality and the user experience in mobile devices. The Company’s solutions include hardware-accelerated digital signal processors (DSPs) and audio codecs and associated algorithms for noise suppression in mobile devices. The Company’s platform consists of its purpose-built DSPs and audio codec analog and mixed signal circuits and algorithms for voice isolation and noise suppression. It also provides its AuViD graphical design tools to help original equipment manufacturers (OEMs) design in and tune its products. The Company offers custom voice and audio processors, some with integrated smart audio codecs for device platforms, including smartphones, feature phones and media tablets. These processors are accompanied by its integration tools and support. It offers voice and audio processors, such as eS305, eS325, eS70x, eS75x, eS804 and eS854.

About QUALCOMM

QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA). The Company is engaged in the development and commercialization of the orthogonal frequency division multiple access (OFDMA) family of technologies, including long-term evolution (LTE), which is an Orthogonal Frequency Division Multiplexing (OFDM)-based standard that uses OFDMA and single-carrier Frequency Division Multiple Access (FDMA), for cellular wireless communication applications. The Company’s segments include QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QSI (Qualcomm Strategic Initiatives). The Company also develops and commercializes a range of other technologies used in handsets and tablets that contribute to end user demand. The Company’s products principally consist of integrated circuits (chips or chipsets) and system software used in mobile devices and in wireless networks.

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