Qorvo (NASDAQ: QRVO) and Photronics (NASDAQ:PLAB) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitabiliy, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Insider and Institutional Ownership
97.4% of Qorvo shares are held by institutional investors. Comparatively, 97.9% of Photronics shares are held by institutional investors. 0.9% of Qorvo shares are held by insiders. Comparatively, 3.7% of Photronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Qorvo and Photronics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Qorvo||$2.97 billion||2.95||$788.51 million||($0.34)||-203.20|
|Photronics||$448.71 million||1.49||$118.26 million||$0.26||37.31|
Qorvo has higher revenue and earnings than Photronics. Qorvo is trading at a lower price-to-earnings ratio than Photronics, indicating that it is currently the more affordable of the two stocks.
This table compares Qorvo and Photronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Qorvo and Photronics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qorvo currently has a consensus target price of $73.82, indicating a potential upside of 6.85%. Photronics has a consensus target price of $13.50, indicating a potential upside of 39.18%. Given Photronics’ higher possible upside, analysts clearly believe Photronics is more favorable than Qorvo.
Volatility & Risk
Qorvo has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Photronics has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Qorvo beats Photronics on 7 of the 12 factors compared between the two stocks.
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.
Photronics, Inc. is a manufacturer of photomasks, which are photographic quartz plates containing microscopic images of electronic circuits. As of October 30, 2016, the Company operated principally from nine manufacturing facilities: two located in Europe, three in Taiwan, one in Korea and three in the United States. Photomasks are used in the manufacture of semiconductors and flat panel displays (FPDs), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits (ICs), and a range of FPDs and other types of electrical and optical components. The Company offers reticle and photomask maintenance, including pellicle replacement, mask cleaning and re-certification, at all its sites across the world. Its products include Mature Binary, Advanced Binary Reticles, Phase Shift Masks-Embedded Attenuated Phase Shift Masks (EAPSM), Other Advanced Products and Large Area Masks.
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