Analyzing Broadcom (NASDAQ:AVGO) & Silex Systems (OTCMKTS:SILXY)

Silex Systems (OTCMKTS:SILXY) and Broadcom (NASDAQ:AVGO) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

76.4% of Broadcom shares are owned by institutional investors. 1.9% of Broadcom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Silex Systems and Broadcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silex Systems	N/A	N/A	N/A
Broadcom	38.85%	41.61%	19.55%

Earnings & Valuation

This table compares Silex Systems and Broadcom”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silex Systems	N/A	N/A	N/A	($0.87)	-22.78
Broadcom	$75.47 billion	22.62	$23.13 billion	$6.00	59.79

Broadcom has higher revenue and earnings than Silex Systems. Silex Systems is trading at a lower price-to-earnings ratio than Broadcom, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Silex Systems and Broadcom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silex Systems	0	0	0	0	0.00
Broadcom	0	4	29	0	2.88

Broadcom has a consensus price target of $491.97, indicating a potential upside of 37.13%. Given Broadcom’s stronger consensus rating and higher possible upside, analysts plainly believe Broadcom is more favorable than Silex Systems.

Summary

Broadcom beats Silex Systems on 11 of the 11 factors compared between the two stocks.

About Silex Systems

Silex Systems Limited, a technology commercialization company, engages in the research and development, commercialization, and license of SILEX laser enrichment technology in Australia. It operates through three segments: Silex Systems, Translucent, and Silex USA. The company also develops cREO, a semiconductor technology. Silex Systems Limited was incorporated in 1987 and is based in Sydney, Australia.

About Broadcom

Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.