Broadcom (NASDAQ:AVGO) and Resonant (NASDAQ:RESN) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
88.0% of Broadcom shares are held by institutional investors. Comparatively, 20.3% of Resonant shares are held by institutional investors. 3.3% of Broadcom shares are held by insiders. Comparatively, 22.3% of Resonant shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Broadcom and Resonant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Broadcom and Resonant, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Broadcom presently has a consensus price target of $291.97, suggesting a potential upside of 27.90%. Resonant has a consensus price target of $8.20, suggesting a potential upside of 145.51%. Given Resonant’s stronger consensus rating and higher probable upside, analysts plainly believe Resonant is more favorable than Broadcom.
Valuation & Earnings
This table compares Broadcom and Resonant’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Broadcom||$17.64 billion||5.35||$1.69 billion||$14.30||15.96|
Broadcom has higher revenue and earnings than Resonant. Resonant is trading at a lower price-to-earnings ratio than Broadcom, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Broadcom has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Resonant has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Broadcom pays an annual dividend of $7.00 per share and has a dividend yield of 3.1%. Resonant does not pay a dividend. Broadcom pays out 49.0% of its earnings in the form of a dividend. Broadcom has raised its dividend for 8 consecutive years.
Broadcom beats Resonant on 11 of the 17 factors compared between the two stocks.
Broadcom Company Profile
Broadcom Inc. designs, develops, and supplies a range of 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 through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. 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. is based in San Jose, California.
Resonant Company Profile
Resonant Inc., a late-stage development company, engages in the development of filter designs for radio frequency (RF) front-ends used in the mobile device industry in the United States. It uses Infinite Synthesized Networks technology to configure and connect resonators, the building blocks of RF filters. The company develops a series of single-band designs for frequency bands; and multiplexer filter designs for two or more bands to address the carrier aggregation, as well as filter designs to replace various filters and associated componentry for various bands. Resonant Inc. was founded in 2012 and is headquartered in Goleta, California.
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