NVDA vs. AVGO, QCOM, TXN, AMAT, INTC, MU, 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), Texas Instruments (TXN), Applied Materials (AMAT), Intel (INTC), Micron Technology (MU), Analog Devices (ADI), Marvell Technology (MRVL), Microchip Technology (MCHP), and Monolithic Power Systems (MPWR).
Broadcom (NASDAQ:AVGO) and NVIDIA (NASDAQ:NVDA) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their community ranking, risk, earnings, dividends, profitability, valuation, analyst recommendations, institutional ownership and media sentiment.
Broadcom pays an annual dividend of $2.10 per share and has a dividend yield of 1.4%. NVIDIA pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Broadcom pays out 9.0% of its earnings in the form of a dividend. NVIDIA pays out 2.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Broadcom has increased its dividend for 14 consecutive years. Broadcom is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
NVIDIA received 311 more outperform votes than Broadcom when rated by MarketBeat users. However, 82.71% of users gave Broadcom an outperform vote while only 69.21% of users gave NVIDIA an outperform vote.
In the previous week, NVIDIA had 118 more articles in the media than Broadcom. MarketBeat recorded 170 mentions for NVIDIA and 52 mentions for Broadcom. NVIDIA's average media sentiment score of 0.61 beat Broadcom's score of 0.49 indicating that Broadcom is being referred to more favorably in the media.
Broadcom currently has a consensus price target of $240.08, suggesting a potential upside of 58.33%. NVIDIA has a consensus price target of $131.59, suggesting a potential upside of 16.39%. Given NVIDIA's stronger consensus rating and higher possible upside, research analysts clearly believe Broadcom is more favorable than NVIDIA.
Broadcom has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.
76.4% of Broadcom shares are held by institutional investors. Comparatively, 65.3% of NVIDIA shares are held by institutional investors. 2.0% of Broadcom shares are held by company insiders. Comparatively, 4.2% of NVIDIA shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
NVIDIA has a net margin of 53.40% compared to NVIDIA's net margin of 24.10%. Broadcom's return on equity of 110.60% beat NVIDIA's return on equity.
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.
Summary
NVIDIA beats Broadcom on 14 of the 22 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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