Comparing Qorvo (NASDAQ:QRVO) & United Microelectronics (NYSE:UMC)

United Microelectronics (NYSE:UMC) and Qorvo (NASDAQ:QRVO) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Volatility & Risk

United Microelectronics has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares United Microelectronics and Qorvo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Microelectronics	33.18%	21.00%	13.87%
Qorvo	10.95%	17.23%	10.06%

Earnings & Valuation

This table compares United Microelectronics and Qorvo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Microelectronics	$7.57 billion	6.04	$1.29 billion	$1.07	16.96
Qorvo	$3.68 billion	2.34	$338.99 million	$4.31	22.61

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

Insider & Institutional Ownership

5.0% of United Microelectronics shares are held by institutional investors. Comparatively, 88.6% of Qorvo shares are held by institutional investors. 8.0% of United Microelectronics shares are held by insiders. Comparatively, 0.5% of Qorvo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for United Microelectronics and Qorvo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Microelectronics	3	1	1	1	2.00
Qorvo	1	14	3	0	2.11

United Microelectronics currently has a consensus target price of $8.60, suggesting a potential downside of 52.62%. Qorvo has a consensus target price of $94.00, suggesting a potential downside of 3.52%. Given Qorvo’s stronger consensus rating and higher possible upside, analysts plainly believe Qorvo is more favorable than United Microelectronics.

Summary

United Microelectronics beats Qorvo on 9 of the 15 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

About Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.