NVE (NASDAQ:NVEC) and Broadcom (NASDAQ:AVGO) Head-To-Head Review
NVE (NASDAQ:NVEC) and Broadcom (NASDAQ:AVGO) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Volatility & Risk
NVE has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
This table compares NVE and Broadcom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
70.6% of NVE shares are held by institutional investors. Comparatively, 83.5% of Broadcom shares are held by institutional investors. 2.3% of NVE shares are held by insiders. Comparatively, 3.3% of Broadcom shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares NVE and Broadcom’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVE||$26.47 million||12.09||$14.51 million||N/A||N/A|
|Broadcom||$20.85 billion||5.87||$12.26 billion||$18.83||16.38|
Broadcom has higher revenue and earnings than NVE.
This is a breakdown of recent ratings and recommmendations for NVE and Broadcom, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Broadcom has a consensus price target of $318.74, suggesting a potential upside of 3.32%. Given Broadcom’s higher possible upside, analysts plainly believe Broadcom is more favorable than NVE.
NVE pays an annual dividend of $4.00 per share and has a dividend yield of 6.1%. Broadcom pays an annual dividend of $10.60 per share and has a dividend yield of 3.4%. Broadcom pays out 56.3% of its earnings in the form of a dividend.
NVE Company Profile
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that utilizes electron spin to acquire, store, and transmit information. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position or speed primarily for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers, such as IL500-series couplers, IL600-series passive-input couplers, IL700/IL200-series high-speed couplers, IL4/IL3-series isolated network couplers, and IL800-series top-of-the-line couplers. In addition, it licenses the spintronic magnetoresistive random access memory technology, as well as conducts contract research and development activities. The company sells its products through distributors in the United States, Europe, the Middle East, Africa, Asia-Pacific, and internationally. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
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 specific standard 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 and switches; read channel based SoCs; custom flash controllers; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. The company's 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 headquartered in San Jose, California.
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