Broadcom Limited (NASDAQ: AVGO) and QuickLogic Corporation (NASDAQ:QUIK) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Risk and Volatility

Broadcom Limited has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, QuickLogic Corporation has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500.

Valuation and Earnings

This table compares Broadcom Limited and QuickLogic Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Broadcom Limited $13.24 billion 8.52 -$1.74 billion $1.22 226.71
QuickLogic Corporation $11.42 million 11.02 -$19.14 million ($0.20) -7.85

QuickLogic Corporation has higher revenue, but lower earnings than Broadcom Limited. QuickLogic Corporation is trading at a lower price-to-earnings ratio than Broadcom Limited, indicating that it is currently the more affordable of the two stocks.

Dividends

Broadcom Limited pays an annual dividend of $4.08 per share and has a dividend yield of 1.5%. QuickLogic Corporation does not pay a dividend. Broadcom Limited pays out 334.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Broadcom Limited and QuickLogic Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadcom Limited 3.12% 26.82% 11.96%
QuickLogic Corporation -120.37% -76.28% -49.70%

Insider and Institutional Ownership

89.4% of Broadcom Limited shares are owned by institutional investors. Comparatively, 19.4% of QuickLogic Corporation shares are owned by institutional investors. 3.6% of Broadcom Limited shares are owned by company insiders. Comparatively, 5.9% of QuickLogic Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Broadcom Limited and QuickLogic Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom Limited 0 1 29 2 3.03
QuickLogic Corporation 0 0 3 0 3.00

Broadcom Limited presently has a consensus target price of $287.42, suggesting a potential upside of 3.92%. QuickLogic Corporation has a consensus target price of $2.25, suggesting a potential upside of 43.31%. Given QuickLogic Corporation’s higher possible upside, analysts plainly believe QuickLogic Corporation is more favorable than Broadcom Limited.

Summary

Broadcom Limited beats QuickLogic Corporation on 11 of the 16 factors compared between the two stocks.

Broadcom Limited Company Profile

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. It offers a range of products that are used in end-products, such as enterprise and data center networking, home connectivity, set-top boxes (STBs), broadband access, telecommunication equipment, smartphones, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Its product portfolio ranges from discrete devices to complex sub-systems that include multiple device types, and also includes firmware for interfacing between analog and digital systems. Its products include mechanical hardware that interfaces with optoelectronic or capacitive sensors.

QuickLogic Corporation Company Profile

QuickLogic Corporation develops and markets semiconductor and software algorithm solutions. The Company’s solutions primarily target smartphones, wearable devices, tablets, and the Internet-of-Things (IoT). The Company is a fabless semiconductor provider of flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays (FPGAs). The Company’s solutions integrate multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. The Company’s solutions are created from its new silicon platforms, including EOS, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products, its mature products, which are produced on semiconductor processes over 180 nanometers, primarily include its pASIC 3 and QuickRAM, as well as royalty revenue, programming hardware and design software. Its sensor algorithm software includes SenseMe software library.

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