Head to Head Contrast: Qorvo (QRVO) & Brooks Automation (NASDAQ:BRKS)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Brooks Automation 8.34% 11.25% 8.96%
Qorvo -1.40% 10.10% 7.54%

Analyst Recommendations

This is a summary of current ratings for Brooks Automation and Qorvo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brooks Automation 0 1 5 0 2.83
Qorvo 1 9 12 0 2.50

Brooks Automation currently has a consensus price target of $27.67, suggesting a potential upside of 10.89%. Qorvo has a consensus price target of $73.82, suggesting a potential upside of 5.96%. Given Brooks Automation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Brooks Automation is more favorable than Qorvo.

Risk & Volatility

Brooks Automation has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Insider & Institutional Ownership

89.9% of Brooks Automation shares are owned by institutional investors. Comparatively, 97.1% of Qorvo shares are owned by institutional investors. 2.2% of Brooks Automation shares are owned by insiders. Comparatively, 0.9% of Qorvo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Brooks Automation pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Qorvo does not pay a dividend. Brooks Automation pays out 50.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Brooks Automation and Qorvo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brooks Automation $668.56 million 2.51 $95.89 million $0.80 31.19
Qorvo $2.97 billion 2.99 $789.88 million ($0.34) -204.91

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

Summary

Brooks Automation beats Qorvo on 8 of the 15 factors compared between the two stocks.

Brooks Automation Company Profile

Brooks Automation, Inc. is a provider of automation and cryogenic solutions for various applications and markets. The Company operates through two segments: Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers critical automated transport, vacuum and contamination controls solutions and services. Its product offerings include robots and integrated automation systems for handling of substrates. It is also a provider of cryogenic components to create vacuum and thermal stability within critical operating environments in the manufacturing process. It also offers equipment for automated contamination control, conditioning and metrology solutions for wafer and reticle carriers. The Brooks Life Science Systems segment offers sample life cycle management solutions that provide life science and bioscience customers with a range of sample management solutions for scientific research and support drug development.

Qorvo Company Profile

Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, infrastructure and defense and aerospace applications. The Company designs, develops, manufactures and markets its products to the United States and international original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). The MP segment is a supplier of radio frequency (RF) solutions that perform various functions in the cellular radio front end section of smartphones and other cellular devices. The IDP segment is a supplier of RF solutions that support various global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, Internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. It operates design, sales and manufacturing facilities located throughout Asia, Europe and North America.

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