QUALCOMM (NASDAQ: QCOM) is one of 67 public companies in the “Communications & Networking” industry, but how does it weigh in compared to its rivals? We will compare QUALCOMM to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, valuation, profitability and earnings.

Volatility and Risk

QUALCOMM has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, QUALCOMM’s rivals have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.

Profitability

This table compares QUALCOMM and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QUALCOMM 17.26% 19.64% 10.95%
QUALCOMM Competitors -1.68% -6.44% 0.52%

Analyst Ratings

This is a summary of recent recommendations and price targets for QUALCOMM and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QUALCOMM 1 16 11 0 2.36
QUALCOMM Competitors 472 2687 4044 194 2.54

QUALCOMM currently has a consensus price target of $64.27, suggesting a potential upside of 23.15%. As a group, “Communications & Networking” companies have a potential upside of 26.43%. Given QUALCOMM’s rivals stronger consensus rating and higher probable upside, analysts clearly believe QUALCOMM has less favorable growth aspects than its rivals.

Dividends

QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 4.4%. 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. As a group, “Communications & Networking” companies pay a dividend yield of 2.0% and pay out 40.9% of their earnings in the form of a dividend. QUALCOMM has increased its dividend for 6 consecutive years.

Valuation and Earnings

This table compares QUALCOMM and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
QUALCOMM $22.57 billion $7.15 billion 20.00
QUALCOMM Competitors $2.87 billion $625.83 million 26.65

QUALCOMM has higher revenue and earnings than its rivals. QUALCOMM is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

77.0% of QUALCOMM shares are owned by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 0.2% of QUALCOMM shares are owned by insiders. Comparatively, 12.5% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

QUALCOMM beats its rivals on 8 of the 15 factors compared.

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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