Seek Returns logo

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

Updated on

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

Company Profile

SymbolAPPAVGO
Company NameAppLovin CorporationBroadcom Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareSemiconductors & Semiconductor Equipment
Market Capitalization198.55 billion USD1,584.31 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateApril 15, 2021August 6, 2009
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of APP 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.

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

Historical Performance at a Glance

SymbolAPPAVGO
5-Day Price Return-18.31%1.69%
13-Week Price Return70.14%22.36%
26-Week Price Return107.64%99.08%
52-Week Price Return334.01%95.18%
Month-to-Date Return-18.31%1.69%
Year-to-Date Return81.27%44.71%
10-Day Avg. Volume7.59M19.45M
3-Month Avg. Volume6.91M22.76M
3-Month Volatility60.93%37.89%
Beta2.571.20

Profitability

Return on Equity (TTM)

APP

257.74%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

APP’s Return on Equity of 257.74% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AVGO

27.01%

Semiconductors & Semiconductor Equipment Industry

Max
47.13%
Q3
23.50%
Median
9.94%
Q1
0.86%
Min
-20.69%

In the upper quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Return on Equity of 27.01% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

APP vs. AVGO: A comparison of their Return on Equity (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Net Profit Margin (TTM)

APP

45.72%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 45.72% places APP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

AVGO

31.59%

Semiconductors & Semiconductor Equipment Industry

Max
52.41%
Q3
23.88%
Median
10.17%
Q1
1.21%
Min
-32.15%

A Net Profit Margin of 31.59% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

APP vs. AVGO: A comparison of their Net Profit Margin (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Operating Profit Margin (TTM)

APP

52.02%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

An Operating Profit Margin of 52.02% places APP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AVGO

37.81%

Semiconductors & Semiconductor Equipment Industry

Max
58.09%
Q3
27.54%
Median
11.18%
Q1
3.31%
Min
-28.36%

An Operating Profit Margin of 37.81% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

APP vs. AVGO: A comparison of their Operating Profit Margin (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

SymbolAPPAVGO
Return on Equity (TTM)257.74%27.01%
Return on Assets (TTM)42.29%11.45%
Net Profit Margin (TTM)45.72%31.59%
Operating Profit Margin (TTM)52.02%37.81%
Gross Profit Margin (TTM)80.87%67.03%

Financial Strength

Current Ratio (MRQ)

APP

2.74

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

APP’s Current Ratio of 2.74 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AVGO

1.50

Semiconductors & Semiconductor Equipment Industry

Max
6.58
Q3
4.24
Median
2.73
Q1
2.13
Min
1.02

AVGO’s Current Ratio of 1.50 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

APP vs. AVGO: A comparison of their Current Ratio (MRQ) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

APP

3.01

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

With a Debt-to-Equity Ratio of 3.01, APP operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AVGO

0.88

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.48
Median
0.25
Q1
0.01
Min
0.00

AVGO’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.88. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

APP vs. AVGO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

APP

6.44

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

APP’s Interest Coverage Ratio of 6.44 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

AVGO

3.83

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
74.71
Median
26.06
Q1
6.43
Min
-7.80

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Interest Coverage Ratio of 3.83 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

APP vs. AVGO: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

SymbolAPPAVGO
Current Ratio (MRQ)2.741.50
Quick Ratio (MRQ)2.541.37
Debt-to-Equity Ratio (MRQ)3.010.88
Interest Coverage Ratio (TTM)6.443.83

Growth

Revenue Growth

APP vs. AVGO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

APP vs. AVGO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

APP

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

APP 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

0.68%

Semiconductors & Semiconductor Equipment Industry

Max
3.72%
Q3
1.51%
Median
0.69%
Q1
0.00%
Min
0.00%

AVGO’s Dividend Yield of 0.68% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

APP vs. AVGO: A comparison of their Dividend Yield (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

APP

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

APP 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

57.20%

Semiconductors & Semiconductor Equipment Industry

Max
205.27%
Q3
88.01%
Median
27.13%
Q1
0.00%
Min
0.00%

AVGO’s Dividend Payout Ratio of 57.20% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

APP vs. AVGO: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

SymbolAPPAVGO
Dividend Yield (TTM)0.00%0.68%
Dividend Payout Ratio (TTM)0.00%57.20%

Valuation

Price-to-Earnings Ratio (TTM)

APP

83.54

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

APP’s P/E Ratio of 83.54 is within the middle range for the Software 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

84.32

Semiconductors & Semiconductor Equipment Industry

Max
106.30
Q3
61.93
Median
38.96
Q1
23.71
Min
13.06

A P/E Ratio of 84.32 places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

APP vs. AVGO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

APP

38.20

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

With a P/S Ratio of 38.20, APP trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AVGO

26.64

Semiconductors & Semiconductor Equipment Industry

Max
19.99
Q3
10.21
Median
5.23
Q1
2.88
Min
1.13

With a P/S Ratio of 26.64, AVGO trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

APP vs. AVGO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

APP

101.50

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

At 101.50, APP’s P/B Ratio is at an extreme premium to the Software 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.

AVGO

19.11

Semiconductors & Semiconductor Equipment Industry

Max
14.22
Q3
6.94
Median
4.29
Q1
1.99
Min
0.67

At 19.11, AVGO’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment 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.

APP vs. AVGO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

SymbolAPPAVGO
Price-to-Earnings Ratio (TTM)83.5484.32
Price-to-Sales Ratio (TTM)38.2026.64
Price-to-Book Ratio (MRQ)101.5019.11
Price-to-Free Cash Flow Ratio (TTM)70.1064.03