ARM vs. AVGO: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM 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 ARM with a market cap of 1,080.18 billion USD, roughly 7.83 times the 137.89 billion USD of its peer.
ARM rides a wilder wave with a beta of 4.41, hinting at bigger swings than AVGO’s steadier 1.06.
Worth noting: ARM flies the ADR flag, tying it to a foreign outfit on U.S. soil, while AVGO sticks to plain-vanilla U.S. listing.
| Symbol | ARM | AVGO |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Broadcom Inc. |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Hock E. Tan |
| Price | 130.45 USD | 229.73 USD |
| Market Cap | 137.89 billion USD | 1,080.18 billion USD |
| Beta | 4.407467 | 1.059 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | August 6, 2009 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM 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 ARM and AVGO based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- Both ARM at 170.26 and AVGO at 107.08 exhibit P/E values well above typical levels. Their stock prices are trading at substantial multiples of their current earnings, suggesting the market anticipates robust future profitability or sees value beyond today’s income statements.
- AVGO has a negative Forward PEG of -1.07, suggesting analysts predict either a drop in earnings or no profits at all in the near future—a red flag for its growth trajectory. Meanwhile, ARM at 6.09 avoids such a pessimistic forecast.
| Symbol | ARM | AVGO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 107.08 |
| Forward PEG Ratio (TTM) | 6.09 | -1.07 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 19.81 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 15.45 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 52.10 |
| EV-to-EBITDA (TTM) | 221.33 | 44.65 |
| EV-to-Sales (TTM) | 36.85 | 20.86 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 54.86 |
Dividend Comparison
ARM 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 ARM’s growth-only approach.
| Symbol | ARM | AVGO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.97% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and AVGO, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ARM posts an interest coverage of “--”, hinting at interest costs so low they’re negligible—often from scant debt or dirt-cheap rates—while AVGO at 6.03 handles interest with solid earnings.
| Symbol | ARM | AVGO |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 1.00 |
| Quick Ratio (TTM) | 4.96 | 0.91 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.95 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.40 |
| Interest Coverage Ratio (TTM) | -- | 6.03 |