Broadcom vs GLOBALFOUNDRIES Which Is More Lucrative?

Broadcom Inc. and GLOBALFOUNDRIES are two leading companies in the semiconductor industry with a strong presence in the global market. Broadcom is known for its diversified portfolio of cutting-edge semiconductor solutions, while GLOBALFOUNDRIES is a leading semiconductor foundry. Both companies have seen fluctuations in their stock prices in recent years, influenced by factors such as market trends, technological advancements, and global economic conditions. Investors interested in the semiconductor industry may find opportunities in stocks from both Broadcom and GLOBALFOUNDRIES.

Broadcom or GLOBALFOUNDRIES?

When comparing Broadcom and GLOBALFOUNDRIES, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Broadcom and GLOBALFOUNDRIES.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Broadcom has a dividend yield of 0.94%, while GLOBALFOUNDRIES has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Broadcom reports a 5-year dividend growth of 10.81% year and a payout ratio of 166.48%. On the other hand, GLOBALFOUNDRIES reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Broadcom P/E ratio at 178.43 and GLOBALFOUNDRIES's P/E ratio at 32.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Broadcom P/B ratio is 15.54 while GLOBALFOUNDRIES's P/B ratio is 2.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Broadcom has seen a 5-year revenue growth of 0.73%, while GLOBALFOUNDRIES's is 0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Broadcom's ROE at 8.62% and GLOBALFOUNDRIES's ROE at 6.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $211.11 for Broadcom and $43.34 for GLOBALFOUNDRIES. Over the past year, Broadcom's prices ranged from $104.15 to $228.70, with a yearly change of 119.59%. GLOBALFOUNDRIES's prices fluctuated between $35.85 and $62.61, with a yearly change of 74.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.