The collector‐top heterojunction transistor (C‐top HBT) with inverted structure is expected to operate at a much higher speed than the emitter‐top heterojunction transistor (E‐top HBT) because the former has a smaller base‐collector junction area. In this paper, the merits of the C‐top HBT compared to the E‐top HBT in circuit applications were investigated by the simulation of ring oscillation characteristics, including dependence on fan‐out and interconnect line length, and the divide‐by‐four circuit characteristics. The influences of the emitter, base and collector resistances and the external base capacitance of the HBT's on the switching characteristics, and the divide‐by‐four circuit performance were also investigated. The degree of improvement was evaluated, using results of simulation over HBT's with the reduced base resistance and the external base capacitance.