Broadcom (AVGO) vs. Cymer (CYMI) Head-To-Head Survey

Broadcom (NASDAQ: AVGO) and Cymer (NASDAQ:CYMI) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Institutional and Insider Ownership

88.8% of Broadcom shares are held by institutional investors. 3.6% of Broadcom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Broadcom pays an annual dividend of $7.00 per share and has a dividend yield of 2.7%. Cymer does not pay a dividend. Broadcom pays out 178.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings and price targets for Broadcom and Cymer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom 0 1 31 1 3.00
Cymer 0 0 0 0 N/A

Broadcom presently has a consensus target price of $304.29, suggesting a potential upside of 15.99%.

Profitability

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

Net Margins Return on Equity Return on Assets
Broadcom 10.18% 28.61% 12.68%
Cymer N/A N/A N/A

Earnings and Valuation

This table compares Broadcom and Cymer’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadcom $17.64 billion 6.09 $1.80 billion $3.93 66.76
Cymer N/A N/A N/A ($1.79) N/A

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

Summary

Broadcom beats Cymer on 10 of the 11 factors compared between the two stocks.

Broadcom Company Profile

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. It offers a range of products that are used in end-products, such as enterprise and data center networking, home connectivity, set-top boxes (STBs), broadband access, telecommunication equipment, smartphones, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Its product portfolio ranges from discrete devices to complex sub-systems that include multiple device types, and also includes firmware for interfacing between analog and digital systems. Its products include mechanical hardware that interfaces with optoelectronic or capacitive sensors.

Cymer Company Profile

Cymer, Inc. (Cymer) is a supplier of light sources used in the photolithography process for semiconductor, or chip manufacturing. The Company provides light sources designed to help enable the performance of wafer steppers and wafer scanners built by lithography tool manufacturers. The Company operates in two segments: light source products and display products. It provides installed base products in support of its chipmaker customers, who use its light sources in their advanced wafer patterning production processes. The Company’s TCZ segment develops, integrates, markets and supports silicon crystallization tools used in the manufacture of different types of displays, including low temperature poly-silicon liquid crystal displays (LTPS – LCD) and organic light emitting diode (OLED) displays. In May 2013, Cymer Inc completed the previously announced merger pursuant to which ASML Holding NV acquired Cymer.

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