NVDA vs. AVGO, TSM, GOOG, GOOGL, AAPL, MSFT, META, QCOM, TXN, and MU
Should you be buying NVIDIA stock or one of its competitors? The main competitors of NVIDIA include Broadcom (AVGO), Taiwan Semiconductor Manufacturing (TSM), Alphabet (GOOG), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), QUALCOMM (QCOM), Texas Instruments (TXN), and Micron Technology (MU). These companies are all part of the "computer and technology" sector.
Broadcom (NASDAQ:AVGO) and NVIDIA (NASDAQ:NVDA) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, community ranking, analyst recommendations, dividends, profitability, media sentiment, risk, earnings and valuation.
NVIDIA has a net margin of 48.85% compared to NVIDIA's net margin of 29.93%. Broadcom's return on equity of 93.61% beat NVIDIA's return on equity.
NVIDIA has higher revenue and earnings than Broadcom. Broadcom is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Broadcom has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.
Broadcom currently has a consensus price target of $1,296.91, suggesting a potential downside of 6.02%. NVIDIA has a consensus price target of $966.55, suggesting a potential upside of 5.80%. Given Broadcom's stronger consensus rating and higher possible upside, analysts plainly believe NVIDIA is more favorable than Broadcom.
76.4% of Broadcom shares are held by institutional investors. Comparatively, 65.3% of NVIDIA shares are held by institutional investors. 2.0% of Broadcom shares are held by insiders. Comparatively, 4.0% of NVIDIA 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.
Broadcom pays an annual dividend of $21.00 per share and has a dividend yield of 1.5%. NVIDIA pays an annual dividend of $0.16 per share and has a dividend yield of 0.0%. Broadcom pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NVIDIA pays out 1.3% of its earnings in the form of a dividend. Broadcom has increased its dividend for 14 consecutive years. Broadcom is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, NVIDIA had 82 more articles in the media than Broadcom. MarketBeat recorded 114 mentions for NVIDIA and 32 mentions for Broadcom. NVIDIA's average media sentiment score of 0.81 beat Broadcom's score of 0.59 indicating that Broadcom is being referred to more favorably in the media.
NVIDIA received 279 more outperform votes than Broadcom when rated by MarketBeat users. However, 82.63% of users gave Broadcom an outperform vote while only 68.84% of users gave NVIDIA an outperform vote.
Summary
NVIDIA beats Broadcom on 16 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NVDA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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