EMCORE (NASDAQ:EMKR – Get Free Report) and Broadcom (NASDAQ:AVGO – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Analyst Ratings
This is a summary of current ratings and recommmendations for EMCORE and Broadcom, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EMCORE | 0 | 2 | 1 | 0 | 2.33 |
| Broadcom | 0 | 1 | 24 | 1 | 3.00 |
EMCORE presently has a consensus target price of $3.00, suggesting a potential upside of 28.76%. Broadcom has a consensus target price of $189.23, suggesting a potential upside of 8.08%. Given EMCORE’s higher probable upside, equities research analysts plainly believe EMCORE is more favorable than Broadcom.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EMCORE | $90.96 million | 0.21 | -$75.36 million | ($8.70) | -0.27 |
| Broadcom | $46.82 billion | 17.41 | $14.08 billion | $23.25 | 7.53 |
Broadcom has higher revenue and earnings than EMCORE. EMCORE is trading at a lower price-to-earnings ratio than Broadcom, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
65.7% of EMCORE shares are held by institutional investors. Comparatively, 76.4% of Broadcom shares are held by institutional investors. 0.9% of EMCORE shares are held by insiders. Comparatively, 2.0% of Broadcom shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
EMCORE has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Profitability
This table compares EMCORE and Broadcom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EMCORE | -81.08% | -25.05% | -13.56% |
| Broadcom | 10.88% | 30.12% | 11.66% |
Summary
Broadcom beats EMCORE on 13 of the 15 factors compared between the two stocks.
About EMCORE
EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, 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.
Receive News & Ratings for EMCORE Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EMCORE and related companies with MarketBeat.com's FREE daily email newsletter.
