QUALCOMM (QCOM) versus Vuzix (VUZI) Critical Analysis
QUALCOMM (NASDAQ: QCOM) and Vuzix (NASDAQ:VUZI) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Volatility & Risk
QUALCOMM has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
This table compares QUALCOMM and Vuzix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
76.9% of QUALCOMM shares are owned by institutional investors. Comparatively, 13.4% of Vuzix shares are owned by institutional investors. 0.2% of QUALCOMM shares are owned by insiders. Comparatively, 14.7% of Vuzix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares QUALCOMM and Vuzix’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|QUALCOMM||$22.29 billion||3.82||$2.47 billion||$3.78||15.18|
|Vuzix||$5.54 million||37.49||-$19.63 million||($1.02)||-7.45|
QUALCOMM has higher revenue and earnings than Vuzix. Vuzix is trading at a lower price-to-earnings ratio than QUALCOMM, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for QUALCOMM and Vuzix, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
QUALCOMM currently has a consensus price target of $63.44, indicating a potential upside of 10.56%. Vuzix has a consensus price target of $10.50, indicating a potential upside of 38.16%. Given Vuzix’s stronger consensus rating and higher probable upside, analysts plainly believe Vuzix is more favorable than QUALCOMM.
QUALCOMM pays an annual dividend of $2.48 per share and has a dividend yield of 4.3%. Vuzix does not pay a dividend. QUALCOMM pays out 65.6% of its earnings in the form of a dividend. QUALCOMM has increased its dividend for 7 consecutive years.
QUALCOMM beats Vuzix on 12 of the 17 factors compared between the two stocks.
QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, wideband CDMA, CDMA time division duplex, and/or long term evolution standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including automotive, Internet of things, mobile, data center, and healthcare for supporting the design and introduction of new products and services for voice and data communications, and new industry segments. The company also provides products and services for mobile health; products designed for the implementation of small cells; development, and other services and related products to the United States government agencies and their contractors; and software products, and content and push-to-talk enablement services to wireless operators. In addition, it licenses chipset technology, and products and services for use in data centers. QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California.
Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Its wearable display products include augmented reality (AR) smart glasses for various enterprise and commercial users and applications; and video viewing glasses for on-the-go users as mobile displays for entertainment and gaming. The company's products also include binocular wearable displays that contain two micro displays mounted in a frame attached to eyeglass-style temples or stereo headphones; monocular smart glasses products for the enterprise, industrial, and commercial markets, as well as video headphones; AR wearable products, which provide users with a live, direct, or indirect view of a physical real-world environment. Its products are worn as eyeglasses that enable the user to view video and digital content, such as movies, computer data, the Internet, or video games. In addition, it offers an app store on its Websites where users can download and purchase applications, including third party applications; VUZIX Basics, an application that provides the fundamental benefits of smart glasses to users; and VUZIX Basics Video provides remote telepresence capabilities. Further, the company provides waveguide optics and design reference kits, and custom and engineering solutions. Vuzix Corporation offers its products directly to consumers, as well as through specialty retailers, online retailers, distributors, value added resellers, and Webstores. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in 2007. Vuzix Corporation was founded in 1997 and is headquartered in West Henrietta, New York.
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