Casa Systems (CASA) and QUALCOMM (QCOM) Head to Head Analysis

Casa Systems (NASDAQ:CASA) and QUALCOMM (NASDAQ:QCOM) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Casa Systems and QUALCOMM’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casa Systems $351.58 million 3.79 $88.50 million $0.79 19.52
QUALCOMM $22.73 billion 2.95 -$4.86 billion $3.19 17.36

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

Profitability

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

Net Margins Return on Equity Return on Assets
Casa Systems 17.93% 109.09% 17.73%
QUALCOMM -21.40% 26.21% 8.42%

Analyst Ratings

This is a breakdown of current ratings for Casa Systems and QUALCOMM, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casa Systems 0 2 6 0 2.75
QUALCOMM 0 9 11 0 2.55

Casa Systems presently has a consensus price target of $20.14, suggesting a potential upside of 30.63%. QUALCOMM has a consensus price target of $70.53, suggesting a potential upside of 27.38%. Given Casa Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Casa Systems is more favorable than QUALCOMM.

Insider and Institutional Ownership

61.7% of Casa Systems shares are held by institutional investors. Comparatively, 89.5% of QUALCOMM shares are held by institutional investors. 65.2% of Casa Systems shares are held by insiders. Comparatively, 0.2% of QUALCOMM shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

QUALCOMM pays an annual dividend of $2.48 per share and has a dividend yield of 4.5%. Casa Systems does not pay a dividend. QUALCOMM pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QUALCOMM has increased its dividend for 7 consecutive years.

Summary

Casa Systems beats QUALCOMM on 10 of the 16 factors compared between the two stocks.

Casa Systems Company Profile

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers software-centric infrastructure solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts.

QUALCOMM Company Profile

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.

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