Broadcom (AVGO) and Kyocera (KYOCY) Head-To-Head Comparison

Broadcom (NASDAQ:AVGO) and Kyocera (OTCMKTS:KYOCY) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares Broadcom and Kyocera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadcom 58.80% 29.03% 15.94%
Kyocera 3.96% 2.59% 2.01%

Dividends

Broadcom pays an annual dividend of $10.60 per share and has a dividend yield of 3.8%. Kyocera pays an annual dividend of $1.07 per share and has a dividend yield of 1.9%. Broadcom pays out 56.3% of its earnings in the form of a dividend. Kyocera pays out 53.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Broadcom has increased its dividend for 9 consecutive years. Broadcom is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Broadcom has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Kyocera has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Broadcom and Kyocera, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom 0 7 30 0 2.81
Kyocera 0 0 0 0 N/A

Broadcom currently has a consensus target price of $289.44, indicating a potential upside of 2.89%. Given Broadcom’s higher possible upside, analysts plainly believe Broadcom is more favorable than Kyocera.

Earnings & Valuation

This table compares Broadcom and Kyocera’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadcom $20.85 billion 5.50 $12.26 billion $18.83 14.94
Kyocera $14.24 billion 1.41 $736.10 million $2.01 27.65

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

Insider and Institutional Ownership

89.3% of Broadcom shares are owned by institutional investors. Comparatively, 0.2% of Kyocera shares are owned by institutional investors. 3.3% of Broadcom 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

Broadcom beats Kyocera on 13 of the 16 factors compared between the two stocks.

About Broadcom

Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. is based in San Jose, California.

About Kyocera

Kyocera Corporation develops, produces, and distributes ceramic and electronic components, and telecommunications and information equipment worldwide. Its Industrial & Automotive Components Group segment offers fine ceramic components, automotive components, liquid crystal displays, and industrial tools to industrial machinery, automotive, general industrial, and construction markets. The company's Semiconductor Components Group segment provides inorganic and organic ceramic packages, and multilayer printing wiring boards for electronic components and devices, such as crystal components, SAW devices, and CMOS/CCD sensors for communication infrastructures and automotive-related markets. Its Electronic Devices Group segment offers electronic components and devices comprising capacitors, crystal devices, connectors, power semiconductor devices, etc., as well as printing devices for information and communications equipment, industrial equipment, and automotive markets. The company's Communications Group segment provides smartphones, mobile phones, and communication modules for the Internet of Things market; and information systems, telecommunication, and engineering services. Its Document Solutions Group segment offers printers, multifunctional products, document solutions, and supplies. The company's Life & Environment Group segment provides solar modules for commercial and residential uses; solar energy products, including storage batteries and energy management systems; medical devices, such as prosthetic joints and dental prosthetics; jewelry; and kitchen accessories, including ceramic knives. It offers its products through sales personnel, sales companies, and third-party distributors. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was founded in 1959 and is headquartered in Kyoto, Japan.

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