Broadcom vs QUALCOMM Which Is a Better Investment?

Broadcom and Qualcomm are two major players in the semiconductor industry, with their stocks being closely watched by investors. Broadcom's acquisition attempt of Qualcomm in 2018 caused a major stir in the tech world, with the deal ultimately being blocked by the U.S. government on national security grounds. Both companies continue to innovate and compete in the fast-paced market, with their stocks experiencing fluctuations based on earnings reports, technological advancements, and market trends. Investors closely monitor these factors to make informed decisions on their investments in Broadcom and Qualcomm stocks.

Broadcom or QUALCOMM ?

When comparing Broadcom and QUALCOMM , 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 QUALCOMM .

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 1.23%, while QUALCOMM has a dividend yield of 2.14%. 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 181.24%. On the other hand, QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%.

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 157.24 and QUALCOMM 's P/E ratio at 17.20. 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 12.20 while QUALCOMM 's P/B ratio is 6.64.

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 QUALCOMM 's is 1.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Broadcom's ROE at 8.87% and QUALCOMM 's ROE at 41.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $169.73 for Broadcom and $156.04 for QUALCOMM . Over the past year, Broadcom's prices ranged from $102.46 to $186.42, with a yearly change of 81.95%. QUALCOMM 's prices fluctuated between $134.94 and $230.63, with a yearly change of 70.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.