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

Updated

Here’s a clear look at AFRM 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 AFRM with a market cap of 1,080.18 billion USD, roughly 70.88 times the 15.24 billion USD of its peer.

AFRM rides a wilder wave with a beta of 3.66, hinting at bigger swings than AVGO’s steadier 1.06.

SymbolAFRMAVGO
Company NameAffirm Holdings, Inc.Broadcom Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureSemiconductors
CEOMr. Max Roth LevchinMr. Hock E. Tan
Price47.24 USD229.73 USD
Market Cap15.24 billion USD1,080.18 billion USD
Beta3.6641.059
ExchangeNASDAQNASDAQ
IPO DateJanuary 13, 2021August 6, 2009
ADRNoNo

Performance Comparison

This chart compares the performance of AFRM 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 AFRM and AVGO based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AFRM posts a negative P/E of -246.14, meaning it’s been running at a loss over the past twelve months with no positive earnings. Conversely, AVGO at 107.08 commands a notably elevated P/E, where its stock price reflects a premium far exceeding its current earnings—a sign investors are betting heavily on future gains.
  • Both AFRM at -1.38 and AVGO at -1.07 show negative Forward PEG values. This signals that analysts foresee either outright losses or a decline in earnings over the next period—a troubling outlook that casts doubt on their near-term profit potential.
SymbolAFRMAVGO
Price-to-Earnings Ratio (P/E, TTM)-246.14107.08
Forward PEG Ratio (TTM)-1.38-1.07
Price-to-Sales Ratio (P/S, TTM)5.0719.81
Price-to-Book Ratio (P/B, TTM)5.3215.45
Price-to-Free Cash Flow Ratio (P/FCF, TTM)25.0452.10
EV-to-EBITDA (TTM)69.8544.65
EV-to-Sales (TTM)7.0720.86
EV-to-Free Cash Flow (TTM)34.9054.86

Dividend Comparison

AFRM 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 AFRM’s growth-only approach.

SymbolAFRMAVGO
Dividend Yield (TTM)0.00%0.97%

Financial Strength Metrics Comparison

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

  • AFRM clocks in at -0.24 below 1.5, earnings just keeping ahead of interest—dicey if profits stumble. By contrast, AVGO’s 6.03 sails through with plenty of cushion.
SymbolAFRMAVGO
Current Ratio (TTM)63.091.00
Quick Ratio (TTM)63.090.91
Debt-to-Equity Ratio (TTM)2.560.95
Debt-to-Assets Ratio (TTM)0.710.40
Interest Coverage Ratio (TTM)-0.246.03