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

Company Overview

AVGO’s market capitalization of 1,204.03 billion USD is significantly greater than ASTS’s 12.12 billion USD, highlighting its more substantial market valuation.

ASTS’s beta of 2.02 points to significantly higher volatility compared to AVGO (beta: 1.12), suggesting ASTS has greater potential for both gains and losses relative to market movements.

Performance Comparison

This chart compares the performance of ASTS and AVGO over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ASTS and AVGO. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• ASTS’s Price-to-Earnings (P/E) ratio of -25.36 indicates negative earnings, signaling current unprofitability. AVGO, with a very high P/E ratio of 93.31, appears to have a valuation that either is significantly stretched or reflects high expectations for substantial future growth.
• ASTS’s Forward PEG ratio of 12.43 and AVGO’s Forward PEG ratio of 4.47 are both considered very high. For ASTS, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. AVGO’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
• ASTS’s Price-to-Book (P/B) ratio of 10.79 and AVGO’s P/B ratio of 17.32 are both very high. For ASTS, this typically means the market assigns a much greater value to the company than its net accounting worth, often due to factors like robust intangible assets or superior growth prospects. AVGO’s high P/B also suggests investors have high expectations for its future performance and are pricing it well above its book value.

Dividend Comparison

ASTS currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while AVGO provides a 0.87% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of ASTS and AVGO. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• ASTS’s Interest Coverage Ratio (ICR) of -52.83 is negative. This implies its operating earnings are insufficient to meet its interest expenses, a serious situation that threatens its financial stability and capacity to honor debt commitments.