Wolfspeed (NYSE:WOLF – Get Free Report) and GLOBALFOUNDRIES (NASDAQ:GFS – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Analyst Ratings
This is a summary of current recommendations for Wolfspeed and GLOBALFOUNDRIES, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Wolfspeed | 1 | 10 | 4 | 0 | 2.20 |
GLOBALFOUNDRIES | 0 | 6 | 7 | 0 | 2.54 |
Wolfspeed currently has a consensus target price of $37.27, suggesting a potential upside of 47.12%. GLOBALFOUNDRIES has a consensus target price of $61.46, suggesting a potential upside of 24.74%. Given Wolfspeed’s higher possible upside, equities analysts plainly believe Wolfspeed is more favorable than GLOBALFOUNDRIES.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Wolfspeed | $921.90 million | 3.46 | -$329.90 million | ($6.46) | -3.92 |
GLOBALFOUNDRIES | $7.39 billion | 3.69 | $1.02 billion | $1.84 | 26.78 |
GLOBALFOUNDRIES has higher revenue and earnings than Wolfspeed. Wolfspeed is trading at a lower price-to-earnings ratio than GLOBALFOUNDRIES, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Wolfspeed and GLOBALFOUNDRIES’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Wolfspeed | -96.12% | -25.75% | -4.88% |
GLOBALFOUNDRIES | 13.80% | 10.16% | 6.09% |
Risk and Volatility
Wolfspeed has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, GLOBALFOUNDRIES has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Summary
GLOBALFOUNDRIES beats Wolfspeed on 10 of the 12 factors compared between the two stocks.
About Wolfspeed
Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.
About GLOBALFOUNDRIES
GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide. The company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units; and offers mainstream wafer fabrication services and technologies. The company was founded in 2009 and is based in Malta, New York.
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