EMCORE (NASDAQ:EMKR – Get Free Report) and Broadcom (NASDAQ:AVGO – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Institutional & Insider Ownership
65.7% of EMCORE shares are owned by institutional investors. Comparatively, 76.4% of Broadcom shares are owned by institutional investors. 0.9% of EMCORE shares are owned by company insiders. Comparatively, 2.0% of Broadcom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for EMCORE and Broadcom, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EMCORE | 0 | 3 | 0 | 0 | 2.00 |
| Broadcom | 0 | 1 | 24 | 1 | 3.00 |
Profitability
This table compares EMCORE and Broadcom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EMCORE | -81.08% | -25.05% | -13.56% |
| Broadcom | 10.88% | 30.12% | 11.66% |
Earnings and Valuation
This table compares EMCORE and Broadcom”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EMCORE | $90.96 million | 0.20 | -$75.36 million | ($8.70) | -0.25 |
| Broadcom | $46.82 billion | 17.15 | $14.08 billion | $23.25 | 7.42 |
Broadcom has higher revenue and earnings than EMCORE. EMCORE is trading at a lower price-to-earnings ratio than Broadcom, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
EMCORE has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.
Summary
Broadcom beats EMCORE on 14 of the 15 factors compared between the two stocks.
About EMCORE
EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.
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.
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