Head to Head Review: QUALCOMM (NASDAQ:QCOM) and GCT Semiconductor (NYSE:GCTS)

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

Volatility and Risk

QUALCOMM has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares QUALCOMM and GCT Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QUALCOMM	$43.26 billion	3.88	$10.14 billion	$10.37	14.99
GCT Semiconductor	$9.13 million	7.43	-$12.38 million	($0.68)	-1.79

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QUALCOMM	26.77%	40.35%	19.74%
GCT Semiconductor	-536.79%	N/A	-168.01%

Analyst Ratings

This is a summary of current ratings for QUALCOMM and GCT Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QUALCOMM	1	10	11	0	2.45
GCT Semiconductor	1	0	1	0	2.00

QUALCOMM currently has a consensus price target of $181.10, suggesting a potential upside of 16.51%. GCT Semiconductor has a consensus price target of $5.00, suggesting a potential upside of 311.52%. Given GCT Semiconductor’s higher possible upside, analysts plainly believe GCT Semiconductor is more favorable than QUALCOMM.

Insider & Institutional Ownership

74.3% of QUALCOMM shares are owned by institutional investors. Comparatively, 28.1% of GCT Semiconductor shares are owned by institutional investors. 0.1% of QUALCOMM shares are owned by insiders. Comparatively, 5.4% of GCT Semiconductor shares are owned 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.

Summary

QUALCOMM beats GCT Semiconductor on 11 of the 14 factors compared between the two stocks.

About QUALCOMM

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry 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 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location 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, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.