Blaize (NASDAQ:BZAI) and Qualcomm (NASDAQ:QCOM) Critical Analysis

Blaize (NASDAQ:BZAI) and Qualcomm (NASDAQ:QCOM) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Volatility & Risk

Blaize has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Qualcomm has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Blaize and Qualcomm, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blaize	1	2	3	0	2.33
Qualcomm	2	20	13	2	2.41

Blaize currently has a consensus target price of $3.38, indicating a potential upside of 633.22%. Qualcomm has a consensus target price of $203.76, indicating a potential upside of 20.75%. Given Blaize’s higher probable upside, equities research analysts plainly believe Blaize is more favorable than Qualcomm.

Insider and Institutional Ownership

97.1% of Blaize shares are held by institutional investors. Comparatively, 74.3% of Qualcomm shares are held by institutional investors. 17.4% of Blaize shares are held by company insiders. Comparatively, 0.1% of Qualcomm 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.

Earnings & Valuation

This table compares Blaize 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
Blaize	$38.63 million	1.73	-$206.90 million	($0.68)	-0.68
Qualcomm	$44.28 billion	4.00	$5.54 billion	$8.64	19.53

Qualcomm has higher revenue and earnings than Blaize. Blaize 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 Blaize and Qualcomm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blaize	-160.85%	-306.51%	-106.16%
Qualcomm	21.01%	38.36%	17.48%

Summary

Qualcomm beats Blaize on 12 of the 15 factors compared between the two stocks.

About Blaize

Blaize® has created a transformative new compute solution that unites silicon and software to optimize AI from the edge to the core. We’re partnering with customers to transform their products so they can deliver better experiences and better lives.

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.