QUALCOMM (NASDAQ:QCOM – Get Free Report) and SmartKem (NASDAQ:SMTK – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
74.3% of QUALCOMM shares are owned by institutional investors. 0.1% of QUALCOMM shares are owned by company insiders. Comparatively, 8.7% of SmartKem shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for QUALCOMM and SmartKem, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QUALCOMM | 1 | 8 | 14 | 1 | 2.63 |
| SmartKem | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares QUALCOMM and SmartKem’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QUALCOMM | 26.77% | 40.35% | 19.74% |
| SmartKem | N/A | -321.41% | -172.10% |
Valuation and Earnings
This table compares QUALCOMM and SmartKem”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QUALCOMM | $44.28 billion | 4.13 | $10.14 billion | $4.89 | 34.95 |
| SmartKem | $80,000.00 | 96.48 | -$10.33 million | ($2.68) | -0.63 |
QUALCOMM has higher revenue and earnings than SmartKem. SmartKem is trading at a lower price-to-earnings ratio than QUALCOMM, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
QUALCOMM has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, SmartKem has a beta of 4.82, suggesting that its share price is 382% more volatile than the S&P 500.
Summary
QUALCOMM beats SmartKem on 12 of the 15 factors compared between the two stocks.
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.
About SmartKem
SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.
Receive News & Ratings for QUALCOMM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for QUALCOMM and related companies with MarketBeat.com's FREE daily email newsletter.
