Energous (NASDAQ:WATT) and Broadcom (NASDAQ:AVGO) Critical Review

Energous (NASDAQ:WATT) and Broadcom (NASDAQ:AVGO) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Risk & Volatility

Energous has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Valuation & Earnings

This table compares Energous and Broadcom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energous	$10.48 million	4.09	-$9.59 million	($2.21)	-3.51
Broadcom	$63.89 billion	25.93	$23.13 billion	$7.83	44.32

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Energous	-66.63%	-25.81%	-22.85%
Broadcom	42.94%	48.33%	23.78%

Analyst Recommendations

This is a breakdown of recent ratings for Energous and Broadcom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energous	1	1	1	0	2.00
Broadcom	0	6	38	1	2.89

Energous currently has a consensus target price of $15.00, indicating a potential upside of 93.30%. Broadcom has a consensus target price of $525.19, indicating a potential upside of 51.35%. Given Energous’ higher probable upside, analysts plainly believe Energous is more favorable than Broadcom.

Institutional and Insider Ownership

4.3% of Energous shares are owned by institutional investors. Comparatively, 76.4% of Broadcom shares are owned by institutional investors. 0.2% of Energous shares are owned by insiders. Comparatively, 1.9% of Broadcom shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Broadcom beats Energous on 13 of the 15 factors compared between the two stocks.

About Energous

Energous Corporation develops wireless power transfer technology through its WattUp platform. The company’s solutions use radio-frequency signals to deliver power to compatible devices, offering an alternative to wired connections and conventional charging pads. Its product portfolio includes wireless power transmitters and receiver technology designed for low-power devices such as sensors and other Internet of Things products. Energous targets applications in areas including retail, healthcare, industrial settings and smart buildings, where wireless power can help reduce the need to replace or recharge batteries.

About Broadcom

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.