Financial Survey: Atomera (NASDAQ:ATOM) versus Broadcom (NASDAQ:AVGO)

Atomera (NASDAQ:ATOM) and Broadcom (NASDAQ:AVGO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Atomera and Broadcom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atomera	1	0	0	0	1.00
Broadcom	0	2	30	2	3.00

Broadcom has a consensus target price of $433.13, suggesting a potential upside of 30.25%. Given Broadcom’s stronger consensus rating and higher probable upside, analysts clearly believe Broadcom is more favorable than Atomera.

Institutional and Insider Ownership

30.8% of Atomera shares are held by institutional investors. Comparatively, 76.4% of Broadcom shares are held by institutional investors. 13.0% of Atomera shares are held by insiders. Comparatively, 2.0% of Broadcom shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Atomera and Broadcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atomera	N/A	-95.15%	-83.74%
Broadcom	36.20%	37.45%	16.51%

Risk and Volatility

Atomera has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares Atomera and Broadcom”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atomera	$65,000.00	2,792.80	-$20.17 million	($0.65)	-8.82
Broadcom	$63.89 billion	24.68	$23.13 billion	$4.76	69.86

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

Summary

Broadcom beats Atomera on 13 of the 15 factors compared between the two stocks.

About Atomera

Atomera Incorporated engages in the developing, commercializing, and licensing proprietary processes and technologies for the semiconductor industry in North America and the Asia Pacific. The company's lead technology is the Mears Silicon Technology, a thin film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was founded in 2001 and is headquartered in Los Gatos, 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.