Broadcom (NASDAQ:AVGO – Get Free Report) and Quantum-Si (NASDAQ:QSI – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares Broadcom and Quantum-Si’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Broadcom | 31.59% | 36.60% | 15.52% |
| Quantum-Si | -3,120.14% | -44.57% | -39.45% |
Earnings & Valuation
This table compares Broadcom and Quantum-Si”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Broadcom | $51.57 billion | 32.80 | $5.90 billion | $3.92 | 91.74 |
| Quantum-Si | $3.06 million | 79.41 | -$101.01 million | ($0.68) | -1.76 |
Broadcom has higher revenue and earnings than Quantum-Si. Quantum-Si is trading at a lower price-to-earnings ratio than Broadcom, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
76.4% of Broadcom shares are held by institutional investors. Comparatively, 39.9% of Quantum-Si shares are held by institutional investors. 2.0% of Broadcom shares are held by company insiders. Comparatively, 30.0% of Quantum-Si shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Broadcom has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Quantum-Si has a beta of 2.85, suggesting that its share price is 185% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Broadcom and Quantum-Si, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Broadcom | 0 | 1 | 28 | 3 | 3.06 |
| Quantum-Si | 0 | 1 | 2 | 0 | 2.67 |
Broadcom presently has a consensus target price of $351.92, suggesting a potential downside of 2.14%. Quantum-Si has a consensus target price of $3.48, suggesting a potential upside of 189.58%. Given Quantum-Si’s higher possible upside, analysts plainly believe Quantum-Si is more favorable than Broadcom.
Summary
Broadcom beats Quantum-Si on 11 of the 15 factors compared between the two stocks.
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.
About Quantum-Si
Quantum-Si incorporated, a life sciences company, engages in the development of single-molecule detection platform to enable Next Generation Protein Sequencing (NGPS). The company's platform is comprised of the Platinum NGPS instrument; the Platinum Analysis Software service; and reagent kits and semiconductor chips for use with its instruments. It is used in protein identification, protein variants, antibody characterization, biomarker identification, and post translational modification analysis applications. The company was founded in 2013 is headquartered in Branford, Connecticut.
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