Financial Survey: QUALCOMM (QCOM) and CalAmp (CAMP)

QUALCOMM (NASDAQ: QCOM) and CalAmp (NASDAQ:CAMP) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Volatility and Risk

QUALCOMM has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, CalAmp has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Dividends

QUALCOMM pays an annual dividend of $2.48 per share and has a dividend yield of 4.4%. CalAmp does not pay a dividend. QUALCOMM pays out 65.6% of its earnings in the form of a dividend. QUALCOMM has raised its dividend for 7 consecutive years.

Earnings and Valuation

This table compares QUALCOMM and CalAmp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QUALCOMM $22.29 billion 3.73 $2.47 billion $3.78 14.85
CalAmp $365.91 million 2.28 $16.61 million $0.92 25.47

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

Profitability

This table compares QUALCOMM and CalAmp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QUALCOMM -20.16% 16.48% 7.00%
CalAmp 7.45% 17.26% 7.21%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QUALCOMM and CalAmp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QUALCOMM 1 12 8 0 2.33
CalAmp 0 3 5 0 2.63

QUALCOMM currently has a consensus target price of $63.44, suggesting a potential upside of 13.04%. CalAmp has a consensus target price of $26.71, suggesting a potential upside of 14.02%. Given CalAmp’s stronger consensus rating and higher possible upside, analysts clearly believe CalAmp is more favorable than QUALCOMM.

Institutional & Insider Ownership

76.9% of QUALCOMM shares are owned by institutional investors. Comparatively, 76.7% of CalAmp shares are owned by institutional investors. 0.2% of QUALCOMM shares are owned by company insiders. Comparatively, 5.4% of CalAmp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

CalAmp beats QUALCOMM on 9 of the 17 factors compared between the two stocks.

About QUALCOMM

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, wideband CDMA, CDMA time division duplex, and/or long term evolution standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including automotive, Internet of things, mobile, data center, and healthcare for supporting the design and introduction of new products and services for voice and data communications, and new industry segments. The company also provides products and services for mobile health; products designed for the implementation of small cells; development, and other services and related products to the United States government agencies and their contractors; and software products, and content and push-to-talk enablement services to wireless operators. In addition, it licenses chipset technology, and products and services for use in data centers. QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California.

About CalAmp

CalAmp Corp. provides in telematics systems, and software and subscription services worldwide. The company provides mobile resource management telematics devices for the Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also offers a portfolio of wireless networking products, including asset tracking units, mobile telematics devices, and fixed and mobile wireless gateways and routers; telematics cloud platform applications; and software as a service applications. The company sells its products and services to customers in the transportation, government, construction, and automotive markets through direct sales organization, a network of licensees, and sales representatives, as well as through Websites and digital presence. CalAmp Corp. was founded in 1981 and is headquartered in Irvine, California.

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