GlobalFoundries (NASDAQ:GFS) versus Blaize (NASDAQ:BZAI) Critical Comparison

by · The Cerbat Gem

Blaize (NASDAQ:BZAIGet Free Report) and GlobalFoundries (NASDAQ:GFSGet Free Report) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Risk and Volatility

Blaize has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Valuation and Earnings

This table compares Blaize and GlobalFoundries”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Blaize$38.63 million2.10-$206.90 million($0.68)-0.82
GlobalFoundries$6.94 billion3.71$885.00 million$1.2836.68

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

Institutional and Insider Ownership

97.1% of Blaize shares are held by institutional investors. 17.4% of Blaize shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Blaize and GlobalFoundries’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Blaize-160.85%-306.51%-106.16%
GlobalFoundries10.36%6.69%4.69%

Analyst Ratings

This is a breakdown of current ratings and target prices for Blaize and GlobalFoundries, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Blaize12302.33
GlobalFoundries29902.35

Blaize presently has a consensus price target of $3.38, suggesting a potential upside of 502.68%. GlobalFoundries has a consensus price target of $74.32, suggesting a potential upside of 58.29%. Given Blaize’s higher possible upside, research analysts clearly believe Blaize is more favorable than GlobalFoundries.

Summary

GlobalFoundries beats Blaize on 11 of the 14 factors compared between the two stocks.

About Blaize

(Get Free Report)

Blaize® has created a transformative new compute solution that unites silicon and software to optimize AI from the edge to the core. We’re partnering with customers to transform their products so they can deliver better experiences and better lives.

About GlobalFoundries

(Get Free Report)

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.