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

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Here’s a clear look at ABT and AVGO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AVGO’s market capitalization of 1,294.30 billion USD is significantly greater than ABT’s 233.90 billion USD, highlighting its more substantial market valuation.

AVGO carries a higher beta at 1.12, indicating it’s more sensitive to market moves, while ABT (beta: 0.74) exhibits greater stability.

SymbolABTAVGO
Company NameAbbott LaboratoriesBroadcom Inc.
CountryUSUS
SectorHealthcareTechnology
IndustryMedical - DevicesSemiconductors
CEORobert B. FordHock E. Tan
Price134.44 USD275.18 USD
Market Cap233.90 billion USD1,294.30 billion USD
Beta0.741.12
ExchangeNYSENASDAQ
IPO DateMarch 17, 1980August 6, 2009
ADRNoNo

Historical Performance

This chart compares the performance of ABT and AVGO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ABT vs. AVGO: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ABT

30.76%

Medical - Devices Industry

Max
49.04%
Q3
9.53%
Median
-7.46%
Q1
-32.83%
Min
-82.64%

In the upper quartile for the Medical - Devices industry, ABT’s Return on Equity of 30.76% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AVGO

18.95%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

In the upper quartile for the Semiconductors industry, AVGO’s Return on Equity of 18.95% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ABT vs. AVGO: A comparison of their ROE against their respective Medical - Devices and Semiconductors industry benchmarks.

Return on Invested Capital

ABT

19.13%

Medical - Devices Industry

Max
21.88%
Q3
6.63%
Median
-1.11%
Q1
-21.08%
Min
-51.95%

In the upper quartile for the Medical - Devices industry, ABT’s Return on Invested Capital of 19.13% signifies a highly effective use of its capital to generate profits when compared to its peers.

AVGO

10.59%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

AVGO’s Return on Invested Capital of 10.59% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.

ABT vs. AVGO: A comparison of their ROIC against their respective Medical - Devices and Semiconductors industry benchmarks.

Net Profit Margin

ABT

31.89%

Medical - Devices Industry

Max
44.80%
Q3
9.77%
Median
-5.53%
Q1
-29.37%
Min
-87.68%

A Net Profit Margin of 31.89% places ABT in the upper quartile for the Medical - Devices industry, signifying strong profitability and more effective cost management than most of its peers.

AVGO

22.64%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

A Net Profit Margin of 22.64% places AVGO in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

ABT vs. AVGO: A comparison of their Net Profit Margin against their respective Medical - Devices and Semiconductors industry benchmarks.

Operating Profit Margin

ABT

16.97%

Medical - Devices Industry

Max
30.13%
Q3
13.12%
Median
3.47%
Q1
-24.42%
Min
-80.56%

An Operating Profit Margin of 16.97% places ABT in the upper quartile for the Medical - Devices industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AVGO

35.94%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

An Operating Profit Margin of 35.94% places AVGO 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.

ABT vs. AVGO: A comparison of their Operating Margin against their respective Medical - Devices and Semiconductors industry benchmarks.

Profitability at a Glance

SymbolABTAVGO
Return on Equity (TTM)30.76%18.95%
Return on Assets (TTM)16.58%7.85%
Return on Invested Capital (TTM)19.13%10.59%
Net Profit Margin (TTM)31.89%22.64%
Operating Profit Margin (TTM)16.97%35.94%
Gross Profit Margin (TTM)55.89%66.09%

Financial Strength

Current Ratio

ABT

1.78

Medical - Devices Industry

Max
12.68
Q3
6.30
Median
4.05
Q1
1.85
Min
0.01

ABT’s Current Ratio of 1.78 falls into the lower quartile for the Medical - Devices industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AVGO

1.08

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

AVGO’s Current Ratio of 1.08 falls into the lower quartile for the Semiconductors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ABT vs. AVGO: A comparison of their Current Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Debt-to-Equity Ratio

ABT

0.27

Medical - Devices Industry

Max
2.34
Q3
1.09
Median
0.37
Q1
0.08
Min
0.00

ABT’s Debt-to-Equity Ratio of 0.27 is typical for the Medical - Devices industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AVGO

0.97

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

AVGO’s leverage is in the upper quartile of the Semiconductors industry, with a Debt-to-Equity Ratio of 0.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ABT vs. AVGO: A comparison of their D/E Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Interest Coverage Ratio

ABT

15.39

Medical - Devices Industry

Max
18.18
Q3
7.53
Median
0.85
Q1
-9.80
Min
-33.94

ABT’s Interest Coverage Ratio of 15.39 is in the upper quartile for the Medical - Devices industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AVGO

5.66

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

AVGO’s Interest Coverage Ratio of 5.66 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.

ABT vs. AVGO: A comparison of their Interest Coverage against their respective Medical - Devices and Semiconductors industry benchmarks.

Financial Strength at a Glance

SymbolABTAVGO
Current Ratio (TTM)1.781.08
Quick Ratio (TTM)1.270.98
Debt-to-Equity Ratio (TTM)0.270.97
Debt-to-Asset Ratio (TTM)0.160.41
Net Debt-to-EBITDA Ratio (TTM)0.601.92
Interest Coverage Ratio (TTM)15.395.66

Growth

The following charts compare key year-over-year (YoY) growth metrics for ABT and AVGO. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ABT vs. AVGO: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ABT vs. AVGO: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ABT vs. AVGO: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ABT

1.70%

Medical - Devices Industry

Max
3.57%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.70%, ABT offers a more attractive income stream than most of its peers in the Medical - Devices industry, signaling a strong commitment to shareholder returns.

AVGO

0.84%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

AVGO’s Dividend Yield of 0.84% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.

ABT vs. AVGO: A comparison of their Dividend Yield against their respective Medical - Devices and Semiconductors industry benchmarks.

Dividend Payout Ratio

ABT

28.92%

Medical - Devices Industry

Max
102.12%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ABT’s Dividend Payout Ratio of 28.92% is in the upper quartile for the Medical - Devices industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AVGO

81.25%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

AVGO’s Dividend Payout Ratio of 81.25% 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 retained for reinvestment compared to many peers.

ABT vs. AVGO: A comparison of their Payout Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Dividend at a Glance

SymbolABTAVGO
Dividend Yield (TTM)1.70%0.84%
Dividend Payout Ratio (TTM)28.92%81.25%

Valuation

Price-to-Earnings Ratio

ABT

17.40

Medical - Devices Industry

Max
90.56
Q3
56.92
Median
43.19
Q1
21.79
Min
5.55

In the lower quartile for the Medical - Devices industry, ABT’s P/E Ratio of 17.40 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AVGO

100.28

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 100.28, AVGO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ABT vs. AVGO: A comparison of their P/E Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Forward P/E to Growth Ratio

ABT

1.73

Medical - Devices Industry

Max
6.56
Q3
3.52
Median
2.22
Q1
0.55
Min
0.03

ABT’s Forward PEG Ratio of 1.73 is within the middle range of its peers in the Medical - Devices industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AVGO

4.83

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

ABT vs. AVGO: A comparison of their Forward PEG Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Price-to-Sales Ratio

ABT

5.52

Medical - Devices Industry

Max
15.74
Q3
8.12
Median
3.40
Q1
2.37
Min
0.42

ABT’s P/S Ratio of 5.52 aligns with the market consensus for the Medical - Devices industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AVGO

22.69

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 22.69, AVGO 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 considerable valuation risk.

ABT vs. AVGO: A comparison of their P/S Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Price-to-Book Ratio

ABT

4.81

Medical - Devices Industry

Max
16.65
Q3
8.03
Median
3.73
Q1
1.92
Min
0.65

ABT’s P/B Ratio of 4.81 is within the conventional range for the Medical - Devices industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AVGO

18.61

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 18.61, AVGO’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.

ABT vs. AVGO: A comparison of their P/B Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Valuation at a Glance

SymbolABTAVGO
Price-to-Earnings Ratio (P/E, TTM)17.40100.28
Forward PEG Ratio (TTM)1.734.83
Price-to-Sales Ratio (P/S, TTM)5.5222.69
Price-to-Book Ratio (P/B, TTM)4.8118.61
Price-to-Free Cash Flow Ratio (P/FCF, TTM)35.1457.03
EV-to-EBITDA (TTM)21.4944.94
EV-to-Sales (TTM)5.6823.70