Broadcom (NASDAQ: BRCM) and Netlist (NASDAQ:NLST) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Broadcom and Netlist, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom 0 0 1 0 3.00
Netlist 0 0 2 0 3.00

Broadcom currently has a consensus price target of $216.40, suggesting a potential upside of 295.83%. Netlist has a consensus price target of $2.23, suggesting a potential upside of 596.88%. Given Netlist’s higher probable upside, analysts plainly believe Netlist is more favorable than Broadcom.

Insider and Institutional Ownership

20.6% of Netlist shares are owned by institutional investors. 15.4% of Netlist shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Broadcom and Netlist’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadcom N/A N/A N/A $2.30 23.77
Netlist $19.66 million 1.15 -$11.23 million ($0.23) -1.39

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

Dividends

Broadcom pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Netlist does not pay a dividend. Broadcom pays out 24.3% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Broadcom 19.62% 17.57% 13.12%
Netlist -40.17% N/A -73.51%

Broadcom Company Profile

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.

Netlist Company Profile

Netlist, Inc. designs, manufactures and sells a range of memory subsystems for datacenter, data storage and computing markets. The Company operates in the segment of design and manufacture of memory subsystems for the server, computing and communications markets. The Company’s memory subsystems consist of combinations of dynamic random access memory integrated circuits (DRAM ICs or DRAM), NAND flash memory (NAND flash), application-specific integrated circuits (ASICs) and other components assembled on printed circuit boards (PCBs). The Company primarily markets and sells its products to original equipment manufacturer (OEM) customers, hyper scale datacenter operators and data storage vendors. The Company’s products include NVvault, HyperCloud, and specialty memory modules and flash-based products. NVvault is a memory subsystem that incorporates both DRAM and NAND flash in a single persistent dual-in line memory module (DIMM) solution.

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