Head to Head Survey: Qorvo (NASDAQ:QRVO) vs. SiTime (NASDAQ:SITM)

Qorvo (NASDAQ:QRVO) and SiTime (NASDAQ:SITM) are both large-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Profitability

This table compares Qorvo and SiTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qorvo	10.95%	17.23%	10.06%
SiTime	3.01%	4.99%	3.48%

Valuation & Earnings

This table compares Qorvo and SiTime”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qorvo	$3.64 billion	2.76	$338.99 million	$4.31	26.49
SiTime	$326.66 million	40.95	-$42.90 million	$0.49	907.92

Qorvo has higher revenue and earnings than SiTime. Qorvo is trading at a lower price-to-earnings ratio than SiTime, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Qorvo and SiTime, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qorvo	1	12	3	0	2.12
SiTime	0	2	10	1	2.92

Qorvo presently has a consensus price target of $91.45, indicating a potential downside of 19.90%. SiTime has a consensus price target of $736.00, indicating a potential upside of 65.44%. Given SiTime’s stronger consensus rating and higher probable upside, analysts plainly believe SiTime is more favorable than Qorvo.

Risk and Volatility

Qorvo has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.88, suggesting that its share price is 188% more volatile than the S&P 500.

Institutional & Insider Ownership

88.6% of Qorvo shares are held by institutional investors. Comparatively, 84.3% of SiTime shares are held by institutional investors. 0.5% of Qorvo shares are held by company insiders. Comparatively, 1.4% of SiTime shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

SiTime beats Qorvo on 8 of the 15 factors compared between the two stocks.

About Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.