NVDA vs. QCOM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at NVDA and QCOM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NVDA’s market capitalization of 3,509.94 billion USD is substantially larger than QCOM’s 166.15 billion USD, indicating a significant difference in their market valuations.
NVDA’s beta of 2.12 points to significantly higher volatility compared to QCOM (beta: 1.26), suggesting NVDA has greater potential for both gains and losses relative to market movements.
| Symbol | NVDA | QCOM |
|---|---|---|
| Company Name | NVIDIA Corporation | QUALCOMM Incorporated |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Mr. Jen-Hsun Huang | Mr. Cristiano Renno Amon |
| Price | 143.85 USD | 151.32 USD |
| Market Cap | 3,509.94 billion USD | 166.15 billion USD |
| Beta | 2.12 | 1.26 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 22, 1999 | December 13, 1991 |
| ADR | No | No |
Historical Performance
This chart compares the performance of NVDA and QCOM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
NVDA
106.92%
Semiconductors Industry
- Max
- 52.74%
- Q3
- 13.07%
- Median
- 3.57%
- Q1
- -15.35%
- Min
- -57.53%
NVDA’s Return on Equity of 106.92% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
QCOM
41.84%
Semiconductors Industry
- Max
- 52.74%
- Q3
- 13.07%
- Median
- 3.57%
- Q1
- -15.35%
- Min
- -57.53%
QCOM’s Return on Equity of 41.84% is in the upper quartile for the Semiconductors industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
NVDA
75.38%
Semiconductors Industry
- Max
- 36.26%
- Q3
- 9.13%
- Median
- 2.19%
- Q1
- -12.00%
- Min
- -33.58%
NVDA’s Return on Invested Capital of 75.38% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
QCOM
23.22%
Semiconductors Industry
- Max
- 36.26%
- Q3
- 9.13%
- Median
- 2.19%
- Q1
- -12.00%
- Min
- -33.58%
QCOM’s Return on Invested Capital of 23.22% is in the upper quartile for the Semiconductors industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
NVDA
51.69%
Semiconductors Industry
- Max
- 76.59%
- Q3
- 18.08%
- Median
- 2.74%
- Q1
- -31.69%
- Min
- -86.90%
NVDA’s Net Profit Margin of 51.69% is in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
QCOM
26.11%
Semiconductors Industry
- Max
- 76.59%
- Q3
- 18.08%
- Median
- 2.74%
- Q1
- -31.69%
- Min
- -86.90%
QCOM’s Net Profit Margin of 26.11% is in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
NVDA
58.03%
Semiconductors Industry
- Max
- 61.81%
- Q3
- 19.54%
- Median
- 3.04%
- Q1
- -23.21%
- Min
- -81.19%
NVDA’s Operating Profit Margin of 58.03% is in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
QCOM
27.32%
Semiconductors Industry
- Max
- 61.81%
- Q3
- 19.54%
- Median
- 3.04%
- Q1
- -23.21%
- Min
- -81.19%
QCOM’s Operating Profit Margin of 27.32% is in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | NVDA | QCOM |
|---|---|---|
| Return on Equity (TTM) | 106.92% | 41.84% |
| Return on Assets (TTM) | 61.29% | 19.94% |
| Return on Invested Capital (TTM) | 75.38% | 23.22% |
| Net Profit Margin (TTM) | 51.69% | 26.11% |
| Operating Profit Margin (TTM) | 58.03% | 27.32% |
| Gross Profit Margin (TTM) | 70.11% | 55.68% |
Financial Strength
Current Ratio
NVDA
3.39
Semiconductors Industry
- Max
- 9.43
- Q3
- 5.27
- Median
- 3.11
- Q1
- 2.23
- Min
- 0.05
NVDA’s Current Ratio of 3.39 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
QCOM
2.73
Semiconductors Industry
- Max
- 9.43
- Q3
- 5.27
- Median
- 3.11
- Q1
- 2.23
- Min
- 0.05
QCOM’s Current Ratio of 2.73 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
NVDA
0.12
Semiconductors Industry
- Max
- 1.08
- Q3
- 0.48
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
NVDA’s Debt-to-Equity Ratio of 0.12 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
QCOM
0.53
Semiconductors Industry
- Max
- 1.08
- Q3
- 0.48
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
QCOM’s Debt-to-Equity Ratio of 0.53 is in the upper quartile for the Semiconductors industry, indicating that its leverage is higher than the majority of its peers. While this can boost shareholder equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
NVDA
350.34
Semiconductors Industry
- Max
- 36.25
- Q3
- 23.04
- Median
- 2.34
- Q1
- -13.81
- Min
- -39.42
NVDA’s Interest Coverage Ratio of 350.34 is exceptionally high, placing it well above the typical range for the Semiconductors industry. This indicates a superior capacity to service its debt, stemming from either robust earnings or a very conservative debt load.
QCOM
22.61
Semiconductors Industry
- Max
- 36.25
- Q3
- 23.04
- Median
- 2.34
- Q1
- -13.81
- Min
- -39.42
QCOM’s Interest Coverage Ratio of 22.61 is positioned near the center of the pack in the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | NVDA | QCOM |
|---|---|---|
| Current Ratio (TTM) | 3.39 | 2.73 |
| Quick Ratio (TTM) | 2.96 | 2.08 |
| Debt-to-Equity Ratio (TTM) | 0.12 | 0.53 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.26 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.05 | 0.56 |
| Interest Coverage Ratio (TTM) | 350.34 | 22.61 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for NVDA and QCOM. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
NVDA
0.03%
Semiconductors Industry
- Max
- 1.68%
- Q3
- 0.72%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NVDA’s Dividend Yield of 0.03% is consistent with its sector peers in the Semiconductors industry, providing a dividend return that is standard for the category.
QCOM
2.27%
Semiconductors Industry
- Max
- 1.68%
- Q3
- 0.72%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
QCOM’s Dividend Yield of 2.27% is exceptionally high, placing it well above the typical range for the Semiconductors industry. While this may seem attractive to income investors, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s future sustainability.
Dividend Payout Ratio
NVDA
1.28%
Semiconductors Industry
- Max
- 43.75%
- Q3
- 19.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NVDA’s payout ratio of 1.28% is within the interquartile range for the Semiconductors industry, suggesting a balanced and sustainable approach to dividing profits between shareholder payouts and company reinvestment.
QCOM
34.21%
Semiconductors Industry
- Max
- 43.75%
- Q3
- 19.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
QCOM’s payout ratio of 34.21% is in the upper quartile for the Semiconductors industry. This indicates a strong commitment to shareholder returns, but also suggests that a smaller portion of earnings is being retained for reinvestment compared to its peers.
Dividend at a Glance
| Symbol | NVDA | QCOM |
|---|---|---|
| Dividend Yield (TTM) | 0.03% | 2.27% |
| Dividend Payout Ratio (TTM) | 1.28% | 34.21% |
Valuation
Price-to-Earnings Ratio
NVDA
45.79
Semiconductors Industry
- Max
- 61.62
- Q3
- 37.34
- Median
- 25.54
- Q1
- 16.45
- Min
- 0.78
NVDA’s P/E Ratio of 45.79 is in the upper quartile for the Semiconductors industry. This high valuation relative to peers suggests potential overvaluation risk and places significant pressure on the company to deliver exceptional future growth.
QCOM
15.13
Semiconductors Industry
- Max
- 61.62
- Q3
- 37.34
- Median
- 25.54
- Q1
- 16.45
- Min
- 0.78
QCOM’s P/E Ratio of 15.13 is in the lower quartile for the Semiconductors industry. This suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
NVDA
3.22
Semiconductors Industry
- Max
- 4.49
- Q3
- 2.19
- Median
- 1.01
- Q1
- 0.27
- Min
- 0.00
The Forward PEG Ratio is not a primary valuation metric for companies in the Semiconductors industry.
QCOM
3.47
Semiconductors Industry
- Max
- 4.49
- Q3
- 2.19
- Median
- 1.01
- Q1
- 0.27
- Min
- 0.00
The Forward PEG Ratio is not a primary valuation metric for companies in the Semiconductors industry.
Price-to-Sales Ratio
NVDA
23.63
Semiconductors Industry
- Max
- 20.55
- Q3
- 10.00
- Median
- 4.00
- Q1
- 1.80
- Min
- 0.18
With a P/S Ratio of 23.63, NVDA trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing a considerable valuation risk.
QCOM
3.93
Semiconductors Industry
- Max
- 20.55
- Q3
- 10.00
- Median
- 4.00
- Q1
- 1.80
- Min
- 0.18
QCOM’s P/S Ratio of 3.93 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
NVDA
41.93
Semiconductors Industry
- Max
- 12.51
- Q3
- 5.97
- Median
- 2.72
- Q1
- 1.39
- Min
- 0.05
At 41.93, NVDA’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market‘s valuation is heavily reliant on future potential, rather than its current net asset value, which can be a high-risk proposition.
QCOM
6.02
Semiconductors Industry
- Max
- 12.51
- Q3
- 5.97
- Median
- 2.72
- Q1
- 1.39
- Min
- 0.05
QCOM’s P/B Ratio of 6.02 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a high price relative to the company‘s net assets, which hinges on its ability to generate superior profits to justify the high valuation.
Valuation at a Glance
| Symbol | NVDA | QCOM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 45.79 | 15.13 |
| Forward PEG Ratio (TTM) | 3.22 | 3.47 |
| Price-to-Sales Ratio (P/S, TTM) | 23.63 | 3.93 |
| Price-to-Book Ratio (P/B, TTM) | 41.93 | 6.02 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 48.71 | 14.19 |
| EV-to-EBITDA (TTM) | 38.53 | 13.07 |
| EV-to-Sales (TTM) | 23.60 | 4.10 |