QUALCOMM (NASDAQ: QCOM) and Inseego (NASDAQ:INSG) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
75.7% of QUALCOMM shares are owned by institutional investors. Comparatively, 12.1% of Inseego shares are owned by institutional investors. 0.2% of QUALCOMM shares are owned by company insiders. Comparatively, 4.1% of Inseego shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 3.4%. Inseego does not pay a dividend. QUALCOMM pays out -80.6% of its earnings in the form of a dividend. Inseego has increased its dividend for 7 consecutive years.
This table compares QUALCOMM and Inseego’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Valuation and Earnings
This table compares QUALCOMM and Inseego’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
QUALCOMM has higher revenue and earnings than Inseego. QUALCOMM is trading at a lower price-to-earnings ratio than Inseego, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
QUALCOMM has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Inseego has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.
This is a breakdown of current ratings for QUALCOMM and Inseego, as reported by MarketBeat.
||Strong Buy Ratings
QUALCOMM currently has a consensus price target of $68.96, suggesting a potential upside of 3.55%. Inseego has a consensus price target of $1.88, suggesting a potential upside of 0.81%. Given QUALCOMM’s higher possible upside, research analysts clearly believe QUALCOMM is more favorable than Inseego.
QUALCOMM beats Inseego on 12 of the 17 factors compared between the two stocks.
QUALCOMM Company Profile
QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA). The Company is engaged in the development and commercialization of the orthogonal frequency division multiple access (OFDMA) family of technologies, including long-term evolution (LTE), which is an Orthogonal Frequency Division Multiplexing (OFDM)-based standard that uses OFDMA and single-carrier Frequency Division Multiple Access (FDMA), for cellular wireless communication applications. The Company’s segments include QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QSI (Qualcomm Strategic Initiatives). The Company also develops and commercializes a range of other technologies used in handsets and tablets that contribute to end user demand. The Company’s products principally consist of integrated circuits (chips or chipsets) and system software used in mobile devices and in wireless networks.
Inseego Company Profile
Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.
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