QUALCOMM (QCOM) and Belden (BDC) Head-To-Head Analysis

QUALCOMM (NASDAQ: QCOM) and Belden (NYSE:BDC) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Dividends

QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 3.3%. Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.2%. QUALCOMM pays out 138.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Belden pays out 13.8% of its earnings in the form of a dividend. QUALCOMM has increased its dividend for 6 consecutive years. QUALCOMM is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings for QUALCOMM and Belden, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QUALCOMM 1 16 10 0 2.33
Belden 0 3 6 0 2.67

QUALCOMM presently has a consensus target price of $66.07, indicating a potential downside of 4.13%. Belden has a consensus target price of $85.86, indicating a potential upside of 0.69%. Given Belden’s stronger consensus rating and higher possible upside, analysts clearly believe Belden is more favorable than QUALCOMM.

Volatility and Risk

QUALCOMM has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Belden has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
QUALCOMM $22.29 billion 4.56 $2.47 billion $1.65 41.76
Belden $2.36 billion 1.53 $128.00 million $1.45 58.81

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

Profitability

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

Net Margins Return on Equity Return on Assets
QUALCOMM 11.06% 18.08% 9.45%
Belden 4.03% 17.52% 6.76%

Insider & Institutional Ownership

75.9% of QUALCOMM shares are held by institutional investors. 0.2% of QUALCOMM shares are held by company insiders. Comparatively, 1.3% of Belden shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

QUALCOMM beats Belden on 12 of the 17 factors compared between the two stocks.

About QUALCOMM

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.

About Belden

Belden Inc. is a signal transmission solutions provider company. The Company operates through five segment: Broadcast Solutions (Broadcast), Enterprise Connectivity Solutions (Enterprise), Industrial Connectivity Solutions (Industrial Connectivity), Industrial IT Solutions (Industrial IT), and Network Security Solutions (Network Security). The segments design, manufacture, and market a portfolio of signal transmission solutions for applications used in a variety of end markets, including broadcast, enterprise, and industrial. The Company’s portfolio of signal transmission solutions provides transmission of data, sound, and video for various applications. The Company’s sells its products to distributors, end users, installers, and to original equipment manufacturers (OEMs). The Company has manufacturing facilities in the United States, other manufacturing and operating facilities in Brazil, Canada, China, Japan, Mexico, and St. Kitts, as well as in various countries in Europe.

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