Head-To-Head Survey: ChipMOS Technologies (IMOS) & Broadcom (AVGO)

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

Institutional and Insider Ownership

7.2% of ChipMOS Technologies shares are owned by institutional investors. Comparatively, 88.0% of Broadcom shares are owned by institutional investors. 3.3% of Broadcom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.



Valuation and Earnings

This table compares ChipMOS Technologies and Broadcom’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChipMOS Technologies $605.30 million 0.99 $94.36 million $0.95 14.71
Broadcom $17.64 billion 5.00 $1.69 billion $14.30 14.91

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

Dividends

ChipMOS Technologies pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. Broadcom pays an annual dividend of $7.00 per share and has a dividend yield of 3.3%. ChipMOS Technologies pays out 13.7% of its earnings in the form of a dividend. Broadcom pays out 49.0% 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. Broadcom has increased its dividend for 8 consecutive years. Broadcom is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

ChipMOS Technologies has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Broadcom has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for ChipMOS Technologies and Broadcom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChipMOS Technologies 0 0 0 0 N/A
Broadcom 0 7 28 0 2.80

Broadcom has a consensus target price of $291.97, indicating a potential upside of 36.98%. Given Broadcom’s higher possible upside, analysts clearly believe Broadcom is more favorable than ChipMOS Technologies.

Profitability

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

Net Margins Return on Equity Return on Assets
ChipMOS Technologies 2.71% 2.91% 1.63%
Broadcom 58.18% 28.54% 14.89%

Summary

Broadcom beats ChipMOS Technologies on 15 of the 16 factors compared between the two stocks.

About ChipMOS Technologies

ChipMOS TECHNOLOGIES INC. researches, develops, manufactures, and sells high integration and high precision integrated circuits, and related assembly and testing services. It provides a range of back-end assembly and test services, including engineering test, wafer probing and final test of memory and logic/mixed-signal semiconductors, as well as leadframe-and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors; and gold bumping, reel to reel assembly, and test services for LCD and other flat-panel display driver semiconductors. The company's semiconductors are used in personal computers; graphics applications, such as game consoles; communications equipment; mobile products comprising cellular handsets, tablets, and consumer electronic products; and automotive/industry and display applications, such as flat-panel displays. It serves customers in Taiwan, Japan, Korea, Hong Kong, and the United States. The company was founded in 1997 and is headquartered in Hsinchu, Taiwan.

About Broadcom

Broadcom Inc. designs, develops, and supplies a range of 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 through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. 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. is based in San Jose, California.

Receive News & Ratings for ChipMOS Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ChipMOS Technologies and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply