Qorvo (NASDAQ:QRVO) and Kyocera (NASDAQ:KYOCY) Critical Analysis

Kyocera (OTCMKTS:KYOCY) and Qorvo (NASDAQ:QRVO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Kyocera and Qorvo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kyocera 0 0 0 0 N/A
Qorvo 0 12 10 0 2.45

Qorvo has a consensus price target of $75.10, indicating a potential upside of 5.42%. Given Qorvo’s higher probable upside, analysts clearly believe Qorvo is more favorable than Kyocera.

Dividends

Kyocera pays an annual dividend of $1.25 per share and has a dividend yield of 1.9%. Qorvo does not pay a dividend. Kyocera pays out 48.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Kyocera 6.10% 3.94% 3.08%
Qorvo 4.31% 14.66% 11.46%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kyocera $14.71 billion 1.58 $928.89 million $2.58 24.96
Qorvo $3.09 billion 2.72 $133.13 million $5.25 13.57

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

Institutional and Insider Ownership

0.2% of Kyocera shares are held by institutional investors. Comparatively, 93.8% of Qorvo shares are held by institutional investors. 0.7% of Qorvo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Kyocera has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Summary

Qorvo beats Kyocera on 10 of the 15 factors compared between the two stocks.

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.

About Qorvo

Qorvo, Inc. provides radio frequency (RF) solutions and technologies for mobile device, infrastructure, and defense and aerospace applications worldwide. It operates through Mobile Products (MP) and Infrastructure and Defense Products (IDP) segments. The MP segment offers cellular RF and WiFi solutions, bulk acoustic wave (BAW) and surface acoustic wave (SAW) filters, power amplifiers (PAs), low noise amplifiers (LNAs), switches, multi-band PAs and transmit modules, RF power management integrated circuits, diversity receive modules, antenna switch modules, antenna tuning and control solutions, modules incorporating PAs and duplexers, and modules incorporating switches, PAs, and duplexers. This segment supplies its solutions for use in mobile devices, including smartphones, notebook computers, wearables, tablets, and cellular-based applications for the Internet of Things (IoT). The IDP segment supplies RF solutions for communications and defense applications, such as high performance defense systems comprising radar, electronic warfare and communication systems, Wi-Fi customer premises equipment for home and work, high speed connectivity in long-term evolution and 5G base stations, cloud connectivity via data center communications and telecom transport, and automotive connectivity and other IoT, including smart home solutions. This segment provides gallium arsenide, gallium nitride power amplifiers, LNAs, switches, complementary metal oxide semiconductor system-on-a-chip solutions, premium BAW and SAW filter solutions, and various multichip and hybrid assemblies. The company sells its products directly to customers, as well as through a network of domestic and foreign sales representative firms and distributors to original equipment manufacturers and original design manufacturers. Qorvo, Inc. was founded in 1991 and is headquartered in Greensboro, North Carolina.

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