Broadcom (NASDAQ:AVGO) & Hua Hong Semiconductor (OTCMKTS:HHUSF) Head-To-Head Survey

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

Profitability

This table compares Hua Hong Semiconductor and Broadcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hua Hong Semiconductor	N/A	N/A	N/A
Broadcom	24.10%	35.82%	13.41%

Analyst Ratings

This is a summary of recent recommendations and price targets for Hua Hong Semiconductor and Broadcom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hua Hong Semiconductor	0	0	0	0	N/A
Broadcom	0	1	25	0	2.96

Broadcom has a consensus target price of $255.11, suggesting a potential upside of 66.97%. Given Broadcom’s higher possible upside, analysts clearly believe Broadcom is more favorable than Hua Hong Semiconductor.

Insider & Institutional Ownership

76.4% of Broadcom shares are owned by institutional investors. 2.0% of Broadcom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Hua Hong Semiconductor and Broadcom’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hua Hong Semiconductor	N/A	N/A	N/A	N/A	N/A
Broadcom	$35.82 billion	19.86	$14.08 billion	$23.25	6.57

Broadcom has higher revenue and earnings than Hua Hong Semiconductor.

Summary

Broadcom beats Hua Hong Semiconductor on 8 of the 8 factors compared between the two stocks.

About Hua Hong Semiconductor

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. It provides embedded non-volatile memory, standard logic and mixed-signal, radio frequency, power management integrated circuits, power discrete, and automotive solutions. The company also offers foundry services; and design services comprising standard and customized IP development, full-custom layout design, and customer-specific integrated solutions, as well as design support and tape out services. In addition, it provides multi-project wafer services; mask making services; and backend services, such as in-house testing, backside processing and dicing, and backend turnkey services, as well as assembly and testing services. Further, the company engages in real estate development; and trading activities. Its products are used in consumer electronics, communications, computing, industrial, and automotive markets in the People's Republic of China, North America, Europe, Japan, and other Asian countries. The company was founded in 1997 and is headquartered in Shanghai, the People's Republic of China.

About Broadcom

Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.