Comparing Qualcomm (NASDAQ:QCOM) & ams-OSRAM (OTCMKTS:AUKUF)

ams-OSRAM (OTCMKTS:AUKUF) and Qualcomm (NASDAQ:QCOM) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Profitability

This table compares ams-OSRAM and Qualcomm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	N/A	N/A	N/A
Qualcomm	21.01%	38.36%	17.48%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ams-OSRAM and Qualcomm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	0	0	0	0	0.00
Qualcomm	2	20	13	2	2.41

Qualcomm has a consensus target price of $203.76, indicating a potential upside of 24.10%. Given Qualcomm’s stronger consensus rating and higher possible upside, analysts plainly believe Qualcomm is more favorable than ams-OSRAM.

Institutional and Insider Ownership

38.1% of ams-OSRAM shares are owned by institutional investors. Comparatively, 74.3% of Qualcomm shares are owned by institutional investors. 0.1% of Qualcomm shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ams-OSRAM and Qualcomm”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	N/A	N/A	N/A	$1.30	14.55
Qualcomm	$44.28 billion	3.89	$5.54 billion	$8.64	19.00

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

Dividends

ams-OSRAM pays an annual dividend of $0.21 per share and has a dividend yield of 1.1%. Qualcomm pays an annual dividend of $3.68 per share and has a dividend yield of 2.2%. ams-OSRAM pays out 16.0% of its earnings in the form of a dividend. Qualcomm pays out 42.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Qualcomm has increased its dividend for 23 consecutive years. Qualcomm is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Qualcomm beats ams-OSRAM on 14 of the 15 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG was founded in 1981 and is headquartered in Premstätten, Austria.

About Qualcomm

Qualcomm Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.