Contrasting Broadcom (BRCM) & Its Rivals
Broadcom (NASDAQ: BRCM) is one of 100 publicly-traded companies in the “Semiconductors” industry, but how does it contrast to its peers? We will compare Broadcom to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
This table compares Broadcom and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
65.2% of shares of all “Semiconductors” companies are held by institutional investors. 6.7% of shares of all “Semiconductors” companies 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.
This is a breakdown of recent recommendations and price targets for Broadcom and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Broadcom currently has a consensus target price of $216.40, suggesting a potential upside of 295.83%. As a group, “Semiconductors” companies have a potential upside of 6.00%. Given Broadcom’s stronger consensus rating and higher probable upside, equities analysts clearly believe Broadcom is more favorable than its peers.
Earnings and Valuation
This table compares Broadcom and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Broadcom Competitors||$4.38 billion||$573.56 million||40.53|
Broadcom’s peers have higher revenue and earnings than Broadcom. Broadcom is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Broadcom pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Broadcom pays out 24.3% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 51.6% of their earnings in the form of a dividend.
Broadcom beats its peers on 7 of the 12 factors compared.
Broadcom Corporation (Broadcom) provides semiconductor solutions for wired and wireless communications. The Company offers a portfolio of system-on-a-chip solutions (SoCs) that deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. The Company’s solutions are used globally by manufacturers and are embedded in an array of communications products. The Company operates in two segments: Broadband and Connectivity, and Infrastructure and Networking. Broadcom’s solutions in Broadband and Connectivity segment include set-top box solutions, broadband modem solutions, connectivity solutions and a range of other technologies. Its solutions in Infrastructure and Networking segment include Ethernet switches and PHYs, which includes switches and fabrics; copper and optical transceivers; backplane and optical front-end physical layer devices; processors, and other Infrastructure and Networking technologies.
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