Broadcom (NASDAQ: BRCM) is one of 100 publicly-traded companies in the “Semiconductors” industry, but how does it compare to its rivals? We will compare Broadcom to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Insider and Institutional Ownership

65.2% of shares of all “Semiconductors” companies are held by institutional investors. 6.7% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Broadcom pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Broadcom pays out 24.3% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 55.1% of their earnings in the form of a dividend.

Profitability

This table compares Broadcom and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadcom 19.62% 17.57% 13.12%
Broadcom Competitors -44.97% 0.36% 0.65%

Earnings & Valuation

This table compares Broadcom and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Broadcom N/A N/A 23.77
Broadcom Competitors $4.38 billion $573.56 million 42.79

Broadcom’s rivals have higher revenue and earnings than Broadcom. Broadcom is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations for Broadcom and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom 0 0 1 0 3.00
Broadcom Competitors 944 4800 8787 367 2.58

Broadcom presently has a consensus target price of $216.40, indicating a potential upside of 295.83%. As a group, “Semiconductors” companies have a potential upside of 8.93%. Given Broadcom’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Broadcom is more favorable than its rivals.

Summary

Broadcom beats its rivals on 7 of the 12 factors compared.

About Broadcom

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.

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