AAPL vs. AVGO: A Head-to-Head Stock Comparison

Company Overview

AAPL’s market capitalization of 3,019.65 billion USD is substantially larger than AVGO’s 1,198.98 billion USD, indicating a significant difference in their market valuations.

With betas of 1.21 for AAPL and 1.06 for AVGO, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of AAPL and AVGO 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.

Valuation Metrics Comparison

This section compares the market valuation of AAPL and AVGO. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• AAPL’s Price-to-Earnings (P/E) ratio of 31.16 and AVGO’s P/E ratio of 118.83 are both very high. For AAPL, this elevated P/E suggests that significant expectations for future earnings growth are already built into its stock price, or it may be overvalued. AVGO’s very high P/E also implies its valuation is rich, possibly indicating market optimism about its prospects or a risk of being overstretched.
• AAPL’s Forward PEG ratio of 2.90 and AVGO’s Forward PEG ratio of 5.98 are both considered very high. For AAPL, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. AVGO’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
• AAPL’s Price-to-Book (P/B) ratio of 45.38 and AVGO’s P/B ratio of 17.15 are both very high. For AAPL, this typically means the market assigns a much greater value to the company than its net accounting worth, often due to factors like robust intangible assets or superior growth prospects. AVGO’s high P/B also suggests investors have high expectations for its future performance and are pricing it well above its book value.

Dividend Comparison

AVGO provides a dividend yield of 0.88%, which is significantly higher than AAPL’s 0.50%, highlighting its commitment to more generous shareholder payouts.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AAPL and AVGO. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• AAPL’s current ratio of 0.82 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.