Analyzing Belden (BDC) and QUALCOMM (NASDAQ:QCOM)

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

Insider & Institutional Ownership

76.7% of QUALCOMM shares are owned by institutional investors. 1.3% of Belden shares are owned by company insiders. Comparatively, 0.2% of QUALCOMM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Belden has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, QUALCOMM has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Belden and QUALCOMM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Belden 0 5 5 0 2.50
QUALCOMM 1 17 9 0 2.30

Belden currently has a consensus price target of $89.14, suggesting a potential upside of 8.33%. QUALCOMM has a consensus price target of $66.50, suggesting a potential upside of 1.95%. Given Belden’s stronger consensus rating and higher probable upside, research analysts clearly believe Belden is more favorable than QUALCOMM.

Dividends

Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.2%. QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 3.5%. Belden pays out 13.8% of its earnings in the form of a dividend. 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 has increased its dividend for 6 consecutive years.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Belden $2.36 billion 1.47 $128.00 million $1.45 56.75
QUALCOMM $22.29 billion 4.31 $2.47 billion $1.65 39.53

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

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

Summary

QUALCOMM beats Belden on 11 of the 17 factors compared between the two stocks.

Belden Company Profile

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.

QUALCOMM Company Profile

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.

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