Qorvo (QRVO) versus ASML Holding N.V. (ASML) Critical Analysis
Qorvo (NASDAQ: QRVO) and ASML Holding N.V. (NASDAQ:ASML) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
ASML Holding N.V. pays an annual dividend of $1.11 per share and has a dividend yield of 0.6%. Qorvo does not pay a dividend. ASML Holding N.V. pays out 22.0% of its earnings in the form of a dividend.
Risk and Volatility
Qorvo has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, ASML Holding N.V. has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
This table compares Qorvo and ASML Holding N.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ASML Holding N.V.||23.81%||19.82%||11.51%|
This is a summary of current recommendations and price targets for Qorvo and ASML Holding N.V., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ASML Holding N.V.||0||5||11||0||2.69|
Qorvo presently has a consensus price target of $75.89, indicating a potential upside of 2.77%. ASML Holding N.V. has a consensus price target of $176.17, indicating a potential downside of 4.56%. Given Qorvo’s higher possible upside, analysts plainly believe Qorvo is more favorable than ASML Holding N.V..
Valuation and Earnings
This table compares Qorvo and ASML Holding N.V.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Qorvo||$3.03 billion||3.10||-$16.55 million||($0.16)||-461.50|
|ASML Holding N.V.||$7.52 billion||10.55||$1.63 billion||$5.05||36.55|
ASML Holding N.V. has higher revenue and earnings than Qorvo. Qorvo is trading at a lower price-to-earnings ratio than ASML Holding N.V., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.1% of Qorvo shares are held by institutional investors. Comparatively, 16.1% of ASML Holding N.V. shares are held by institutional investors. 0.9% of Qorvo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
ASML Holding N.V. beats Qorvo on 12 of the 16 factors compared between the two stocks.
Qorvo Company Profile
Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, infrastructure and defense and aerospace applications. The Company designs, develops, manufactures and markets its products to the United States and international original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). The MP segment is a supplier of radio frequency (RF) solutions that perform various functions in the cellular radio front end section of smartphones and other cellular devices. The IDP segment is a supplier of RF solutions that support various global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, Internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. It operates design, sales and manufacturing facilities located throughout Asia, Europe and North America.
ASML Holding N.V. Company Profile
ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company’s products include systems, and installed base products and services. The Company’s principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.
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