Seek Returns logo

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

Updated

Here’s a clear look at ABNB and AVGO, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

AVGO towers over ABNB with a market cap of 1,080.18 billion USD, roughly 13.52 times the 79.88 billion USD of its peer.

ABNB at 1.15 and AVGO at 1.06 move in sync when it comes to market volatility.

SymbolABNBAVGO
Company NameAirbnb, Inc.Broadcom Inc.
CountryUSUS
SectorConsumer CyclicalTechnology
IndustryTravel ServicesSemiconductors
CEOMr. Brian CheskyMr. Hock E. Tan
Price127.52 USD229.73 USD
Market Cap79.88 billion USD1,080.18 billion USD
Beta1.1461.059
ExchangeNASDAQNASDAQ
IPO DateDecember 10, 2020August 6, 2009
ADRNoNo

Performance Comparison

This chart compares the performance of ABNB and AVGO over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ABNB and AVGO based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AVGO has a notably high P/E of 107.08, where its market price commands a steep multiple of its earnings from the past year—indicating investors are pricing in significant future potential. On the flip side, ABNB at 31.20 maintains a P/E within a more standard range, tied closer to its current profitability.
  • AVGO has a negative Forward PEG of -1.07, suggesting analysts predict either a drop in earnings or no profits at all in the near future—a red flag for its growth trajectory. Meanwhile, ABNB at 1.52 avoids such a pessimistic forecast.
SymbolABNBAVGO
Price-to-Earnings Ratio (P/E, TTM)31.20107.08
Forward PEG Ratio (TTM)1.52-1.07
Price-to-Sales Ratio (P/S, TTM)7.1119.81
Price-to-Book Ratio (P/B, TTM)9.9815.45
Price-to-Free Cash Flow Ratio (P/FCF, TTM)18.1652.10
EV-to-EBITDA (TTM)29.2344.65
EV-to-Sales (TTM)6.6420.86
EV-to-Free Cash Flow (TTM)16.9554.86

Dividend Comparison

ABNB pays no dividends, focusing all profits on growth, appealing to capital-gains investors. Meanwhile, AVGO’s 0.97% yield rewards shareholders, showing financial confidence while supporting objectives—a contrast to ABNB’s growth-only approach.

SymbolABNBAVGO
Dividend Yield (TTM)0.00%0.97%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ABNB and AVGO, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • ABNB posts an interest coverage of “--”, hinting at interest costs so low they’re negligible—often from scant debt or dirt-cheap rates—while AVGO at 6.03 handles interest with solid earnings.
SymbolABNBAVGO
Current Ratio (TTM)1.271.00
Quick Ratio (TTM)1.270.91
Debt-to-Equity Ratio (TTM)0.290.95
Debt-to-Assets Ratio (TTM)0.090.40
Interest Coverage Ratio (TTM)--6.03