QUALCOMM vs Broadcom

QUALCOMM and Broadcom are two major players in the semiconductor industry, with both companies vying for dominance in the market. While QUALCOMM is known for its advanced mobile technologies and strong patent portfolio, Broadcom is recognized for its diverse product offerings and strategic acquisitions. This has led to intense competition between the two companies, leading to fluctuations in their stocks. Investors closely monitor the performance of both stocks to gauge the overall health of the semiconductor industry.

QUALCOMM or Broadcom?

When comparing QUALCOMM and Broadcom, 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 QUALCOMM and Broadcom.

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. QUALCOMM has a dividend yield of 1.9%, while Broadcom has a dividend yield of 1.2%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 41.69%. On the other hand, Broadcom reports a 5-year dividend growth of -13.53% year and a payout ratio of 181.24%.

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 QUALCOMM P/E ratio at 22.30 and Broadcom's P/E ratio at 161.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. QUALCOMM P/B ratio is 7.88 while Broadcom's P/B ratio is 12.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, QUALCOMM has seen a 5-year revenue growth of 1.06%, while Broadcom's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with QUALCOMM 's ROE at 37.16% and Broadcom's ROE at 8.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.75 for QUALCOMM and $173.37 for Broadcom. Over the past year, QUALCOMM 's prices ranged from $104.33 to $230.63, with a yearly change of 121.06%. Broadcom's prices fluctuated between $81.83 and $186.42, with a yearly change of 127.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.