Critical Contrast: Wolfspeed (NYSE:WOLF) vs. GLOBALFOUNDRIES (NASDAQ:GFS)

GLOBALFOUNDRIES (NASDAQ:GFS) and Wolfspeed (NYSE:WOLF) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Valuation & Earnings

This table compares GLOBALFOUNDRIES and Wolfspeed’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GLOBALFOUNDRIES	$7.39 billion	3.99	$1.02 billion	$1.84	28.95
Wolfspeed	$921.90 million	3.31	-$329.90 million	($6.46)	-3.76

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

Volatility and Risk

GLOBALFOUNDRIES has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Profitability

This table compares GLOBALFOUNDRIES and Wolfspeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GLOBALFOUNDRIES	13.80%	10.16%	6.09%
Wolfspeed	-96.12%	-27.37%	-4.78%

Analyst Ratings

This is a breakdown of current ratings and target prices for GLOBALFOUNDRIES and Wolfspeed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GLOBALFOUNDRIES	0	6	7	0	2.54
Wolfspeed	1	10	4	0	2.20

GLOBALFOUNDRIES currently has a consensus target price of $61.46, indicating a potential upside of 15.40%. Wolfspeed has a consensus target price of $36.93, indicating a potential upside of 52.24%. Given Wolfspeed’s higher probable upside, analysts clearly believe Wolfspeed is more favorable than GLOBALFOUNDRIES.

Summary

GLOBALFOUNDRIES beats Wolfspeed on 10 of the 12 factors compared between the two stocks.

About GLOBALFOUNDRIES

GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide. The company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units; and offers mainstream wafer fabrication services and technologies. The company was founded in 2009 and is based in Malta, New York.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.