Reviewing AXT (NASDAQ:AXTI) & Qorvo (NASDAQ:QRVO) - Defense World

2022-07-02 09:14:41 By : Ms. Maggie Hao

Posted by admin on Jul 2nd, 2022

AXT (NASDAQ:AXTI – Get Rating) and Qorvo (NASDAQ:QRVO – Get Rating) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

AXT has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

53.5% of AXT shares are held by institutional investors. Comparatively, 85.9% of Qorvo shares are held by institutional investors. 8.0% of AXT shares are held by insiders. Comparatively, 0.5% of Qorvo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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

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

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

This is a summary of recent recommendations and price targets for AXT and Qorvo, as provided by MarketBeat.com.

AXT presently has a consensus target price of $10.25, suggesting a potential upside of 78.88%. Qorvo has a consensus target price of $156.19, suggesting a potential upside of 68.91%. Given AXT’s stronger consensus rating and higher possible upside, equities research analysts plainly believe AXT is more favorable than Qorvo.

Qorvo beats AXT on 9 of the 14 factors compared between the two stocks.

AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. It produces semiconductor substrates using its proprietary vertical gradient freeze technology. The company offers indium phosphide for use in data center connectivity using light/lasers, 5G communications, fiber optic lasers and detectors, passive optical networks, silicon photonics, photonic integrated circuits, terrestrial solar cells, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LED, screen displays, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. AXT, Inc. sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.

Qorvo, Inc. develops and commercializes technologies and products for wireless, wired, and power markets worldwide. The company operates through two segments, Mobile Products, and Infrastructure and Defense Products. It offers mobile devices, such as smartphones, wearables, laptops, tablets and other devices; radio frequency power management integrated circuits, ultra-wideband (UWB) system-on-a-chip (SoC) and system-in-package (SiP) solutions, MEMS-based sensors, antenna tuners, and antennaplexers, as well as discrete multiplexers, duplexers, filters, and switches; and cellular base stations include switch-low noise amplifier (LNA) modules, variable gain amplifiers, integrated power amplifier (PA) Doherty modules, discrete LNAs, and high power GaN amplifiers. The company's also provides SiC products, such as Schottky diodes and transistors for automotive, industrial, IT infrastructure and renewable energy markets; SoC hardware, firmware, and application software for smart home applications; power management solutions include programmable power management integrated circuits (ICs) and power application controllers; RF products and compound semiconductor foundry services to defense primes and other global defense and aerospace customers; RF connectivity and UWB SoC solutions for automotive connectivity; and Wi-Fi products, such as PAs, switches, LNAs and bulk acoustic wave filters, as well as integrated solutions including front end modules (FEMs) and integrated FEMs. It sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.

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