AMAT vs. AVGO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMAT 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 AMAT’s 153.32 billion USD, highlighting its more substantial market valuation.
With betas of 1.66 for AMAT and 1.12 for AVGO, both stocks show similar sensitivity to overall market movements.
| Symbol | AMAT | AVGO |
|---|---|---|
| Company Name | Applied Materials, Inc. | Broadcom Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Gary E. Dickerson | Hock E. Tan |
| Price | 191.05 USD | 275.18 USD |
| Market Cap | 153.32 billion USD | 1,294.30 billion USD |
| Beta | 1.66 | 1.12 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 17, 1980 | August 6, 2009 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMAT 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.
Profitability
Return on Equity
AMAT
35.84%
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, AMAT’s Return on Equity of 35.84% 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.
Return on Invested Capital
AMAT
25.68%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
In the upper quartile for the Semiconductors industry, AMAT’s Return on Invested Capital of 25.68% 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.
Net Profit Margin
AMAT
24.06%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
A Net Profit Margin of 24.06% places AMAT in the upper quartile for the Semiconductors 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.
Operating Profit Margin
AMAT
29.66%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
An Operating Profit Margin of 29.66% places AMAT 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.
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.
Profitability at a Glance
| Symbol | AMAT | AVGO |
|---|---|---|
| Return on Equity (TTM) | 35.84% | 18.95% |
| Return on Assets (TTM) | 20.09% | 7.85% |
| Return on Invested Capital (TTM) | 25.68% | 10.59% |
| Net Profit Margin (TTM) | 24.06% | 22.64% |
| Operating Profit Margin (TTM) | 29.66% | 35.94% |
| Gross Profit Margin (TTM) | 48.14% | 66.09% |
Financial Strength
Current Ratio
AMAT
2.46
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
AMAT’s Current Ratio of 2.46 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.
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.
Debt-to-Equity Ratio
AMAT
0.33
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
AMAT’s Debt-to-Equity Ratio of 0.33 is typical for the Semiconductors 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.
Interest Coverage Ratio
AMAT
31.92
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
AMAT’s Interest Coverage Ratio of 31.92 is in the upper quartile for the Semiconductors 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.
Financial Strength at a Glance
| Symbol | AMAT | AVGO |
|---|---|---|
| Current Ratio (TTM) | 2.46 | 1.08 |
| Quick Ratio (TTM) | 1.76 | 0.98 |
| Debt-to-Equity Ratio (TTM) | 0.33 | 0.97 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.41 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.01 | 1.92 |
| Interest Coverage Ratio (TTM) | 31.92 | 5.66 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMAT and AVGO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AMAT
0.87%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Yield of 0.87% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.
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.
Dividend Payout Ratio
AMAT
18.53%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Payout Ratio of 18.53% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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.
Dividend at a Glance
| Symbol | AMAT | AVGO |
|---|---|---|
| Dividend Yield (TTM) | 0.87% | 0.84% |
| Dividend Payout Ratio (TTM) | 18.53% | 81.25% |
Valuation
Price-to-Earnings Ratio
AMAT
22.93
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
AMAT’s P/E Ratio of 22.93 is within the middle range for the Semiconductors 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.
Forward P/E to Growth Ratio
AMAT
3.41
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.
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.
Price-to-Sales Ratio
AMAT
5.46
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
AMAT’s P/S Ratio of 5.46 aligns with the market consensus for the Semiconductors 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.
Price-to-Book Ratio
AMAT
8.17
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
AMAT’s P/B Ratio of 8.17 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
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.
Valuation at a Glance
| Symbol | AMAT | AVGO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.93 | 100.28 |
| Forward PEG Ratio (TTM) | 3.41 | 4.83 |
| Price-to-Sales Ratio (P/S, TTM) | 5.46 | 22.69 |
| Price-to-Book Ratio (P/B, TTM) | 8.17 | 18.61 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.83 | 57.03 |
| EV-to-EBITDA (TTM) | 17.57 | 44.94 |
| EV-to-Sales (TTM) | 5.46 | 23.70 |