NVDA vs. AVGO, QCOM, AMAT, TXN, MU, INTC, ADI, MRVL, MCHP, and MPWR
Should you be buying NVIDIA stock or one of its competitors? The main competitors of NVIDIA include Broadcom (AVGO), QUALCOMM (QCOM), Applied Materials (AMAT), Texas Instruments (TXN), Micron Technology (MU), Intel (INTC), Analog Devices (ADI), Marvell Technology (MRVL), Microchip Technology (MCHP), and Monolithic Power Systems (MPWR).
NVIDIA (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, media sentiment, dividends, analyst recommendations, community ranking and risk.
NVIDIA pays an annual dividend of $0.16 per share and has a dividend yield of 0.0%. Broadcom pays an annual dividend of $21.00 per share and has a dividend yield of 1.5%. NVIDIA pays out 0.9% of its earnings in the form of a dividend. Broadcom pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
NVIDIA has a net margin of 53.40% compared to Broadcom's net margin of 29.93%. NVIDIA's return on equity of 110.60% beat Broadcom's return on equity.
65.3% of NVIDIA shares are held by institutional investors. Comparatively, 76.4% of Broadcom shares are held by institutional investors. 4.2% of NVIDIA shares are held by company insiders. Comparatively, 2.0% of Broadcom shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
NVIDIA received 310 more outperform votes than Broadcom when rated by MarketBeat users. However, 82.64% of users gave Broadcom an outperform vote while only 69.06% of users gave NVIDIA an outperform vote.
NVIDIA presently has a consensus price target of $1,130.20, suggesting a potential downside of 4.83%. Broadcom has a consensus price target of $1,341.16, suggesting a potential downside of 4.48%. Given Broadcom's higher possible upside, analysts plainly believe Broadcom is more favorable than NVIDIA.
NVIDIA has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
NVIDIA has higher revenue and earnings than Broadcom. Broadcom is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
In the previous week, NVIDIA had 181 more articles in the media than Broadcom. MarketBeat recorded 219 mentions for NVIDIA and 38 mentions for Broadcom. Broadcom's average media sentiment score of 0.85 beat NVIDIA's score of 0.63 indicating that Broadcom is being referred to more favorably in the news media.
Summary
NVIDIA beats Broadcom on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NVDA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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