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

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Here’s a clear look at ADSK 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 ADSK’s 67.75 billion USD, highlighting its more substantial market valuation.

With betas of 1.45 for ADSK and 1.12 for AVGO, both stocks show similar sensitivity to overall market movements.

SymbolADSKAVGO
Company NameAutodesk, Inc.Broadcom Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationSemiconductors
CEOAndrew AnagnostHock E. Tan
Price316.66 USD275.18 USD
Market Cap67.75 billion USD1,294.30 billion USD
Beta1.451.12
ExchangeNASDAQNASDAQ
IPO DateJune 28, 1985August 6, 2009
ADRNoNo

Historical Performance

This chart compares the performance of ADSK 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.

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

Profitability

Return on Equity

ADSK

45.55%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

In the upper quartile for the Software - Application industry, ADSK’s Return on Equity of 45.55% 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.

ADSK vs. AVGO: A comparison of their ROE against their respective Software - Application and Semiconductors industry benchmarks.

Return on Invested Capital

ADSK

16.53%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

In the upper quartile for the Software - Application industry, ADSK’s Return on Invested Capital of 16.53% 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.

ADSK vs. AVGO: A comparison of their ROIC against their respective Software - Application and Semiconductors industry benchmarks.

Net Profit Margin

ADSK

18.53%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

A Net Profit Margin of 18.53% places ADSK in the upper quartile for the Software - Application 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.

ADSK vs. AVGO: A comparison of their Net Profit Margin against their respective Software - Application and Semiconductors industry benchmarks.

Operating Profit Margin

ADSK

20.29%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

An Operating Profit Margin of 20.29% places ADSK in the upper quartile for the Software - Application 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.

ADSK vs. AVGO: A comparison of their Operating Margin against their respective Software - Application and Semiconductors industry benchmarks.

Profitability at a Glance

SymbolADSKAVGO
Return on Equity (TTM)45.55%18.95%
Return on Assets (TTM)11.11%7.85%
Return on Invested Capital (TTM)16.53%10.59%
Net Profit Margin (TTM)18.53%22.64%
Operating Profit Margin (TTM)20.29%35.94%
Gross Profit Margin (TTM)90.53%66.09%

Financial Strength

Current Ratio

ADSK

0.65

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

ADSK’s Current Ratio of 0.65 falls into the lower quartile for the Software - Application 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.

ADSK vs. AVGO: A comparison of their Current Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Debt-to-Equity Ratio

ADSK

0.90

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

ADSK’s leverage is in the upper quartile of the Software - Application industry, with a Debt-to-Equity Ratio of 0.90. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

ADSK vs. AVGO: A comparison of their D/E Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Interest Coverage Ratio

ADSK

184.00

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

With an Interest Coverage Ratio of 184.00, ADSK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Application industry. This stems from either robust earnings or a conservative debt load.

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.

ADSK vs. AVGO: A comparison of their Interest Coverage against their respective Software - Application and Semiconductors industry benchmarks.

Financial Strength at a Glance

SymbolADSKAVGO
Current Ratio (TTM)0.651.08
Quick Ratio (TTM)0.650.98
Debt-to-Equity Ratio (TTM)0.900.97
Debt-to-Asset Ratio (TTM)0.220.41
Net Debt-to-EBITDA Ratio (TTM)0.351.92
Interest Coverage Ratio (TTM)184.005.66

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

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

Dividend

Dividend Yield

ADSK

0.00%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ADSK currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

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.

ADSK vs. AVGO: A comparison of their Dividend Yield against their respective Software - Application and Semiconductors industry benchmarks.

Dividend Payout Ratio

ADSK

0.00%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ADSK has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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.

ADSK vs. AVGO: A comparison of their Payout Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Dividend at a Glance

SymbolADSKAVGO
Dividend Yield (TTM)0.00%0.84%
Dividend Payout Ratio (TTM)0.00%81.25%

Valuation

Price-to-Earnings Ratio

ADSK

57.62

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

ADSK’s P/E Ratio of 57.62 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

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.

ADSK vs. AVGO: A comparison of their P/E Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Forward P/E to Growth Ratio

ADSK

4.33

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

ADSK’s Forward PEG Ratio of 4.33 is within the middle range of its peers in the Software - Application 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.

ADSK vs. AVGO: A comparison of their Forward PEG Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Price-to-Sales Ratio

ADSK

10.67

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

ADSK’s P/S Ratio of 10.67 aligns with the market consensus for the Software - Application 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.

ADSK vs. AVGO: A comparison of their P/S Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Price-to-Book Ratio

ADSK

25.89

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

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.

ADSK vs. AVGO: A comparison of their P/B Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Valuation at a Glance

SymbolADSKAVGO
Price-to-Earnings Ratio (P/E, TTM)57.62100.28
Forward PEG Ratio (TTM)4.334.83
Price-to-Sales Ratio (P/S, TTM)10.6722.69
Price-to-Book Ratio (P/B, TTM)25.8918.61
Price-to-Free Cash Flow Ratio (P/FCF, TTM)42.1857.03
EV-to-EBITDA (TTM)45.7044.94
EV-to-Sales (TTM)10.7623.70