Broadcom (NASDAQ: BRCM) is one of 100 public companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare Broadcom to related companies based on the strength of its analyst recommendations, earnings, dividends, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

66.3% of shares of all “Semiconductors” companies are owned by institutional investors. 6.2% of shares of all “Semiconductors” 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.

Dividends

Broadcom pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Broadcom pays out 24.3% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 51.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Broadcom and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom 0 0 1 0 3.00
Broadcom Competitors 948 4785 8769 366 2.58

Broadcom currently has a consensus target price of $216.40, indicating a potential upside of 295.83%. As a group, “Semiconductors” companies have a potential upside of 6.12%. Given Broadcom’s stronger consensus rating and higher possible upside, research analysts clearly believe Broadcom is more favorable than its peers.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Broadcom N/A N/A 23.77
Broadcom Competitors $4.38 billion $573.56 million 40.47

Broadcom’s peers have higher revenue and earnings than Broadcom. Broadcom is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Broadcom and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadcom 19.62% 17.57% 13.12%
Broadcom Competitors -43.11% 1.44% 1.32%

Summary

Broadcom beats its peers on 7 of the 12 factors compared.

Broadcom Company Profile

Broadcom Corporation (Broadcom) provides semiconductor solutions for wired and wireless communications. The Company offers a portfolio of system-on-a-chip solutions (SoCs) that deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. The Company’s solutions are used globally by manufacturers and are embedded in an array of communications products. The Company operates in two segments: Broadband and Connectivity, and Infrastructure and Networking. Broadcom’s solutions in Broadband and Connectivity segment include set-top box solutions, broadband modem solutions, connectivity solutions and a range of other technologies. Its solutions in Infrastructure and Networking segment include Ethernet switches and PHYs, which includes switches and fabrics; copper and optical transceivers; backplane and optical front-end physical layer devices; processors, and other Infrastructure and Networking technologies.

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