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

Company Overview

AVGO dominates in value with a market cap of 1,080.18 billion USD, eclipsing BA’s 153.22 billion USD by roughly 7.05×.

With betas of 1.06 for AVGO and 1.41 for BA, both show similar volatility profiles relative to the overall market.

Performance Comparison

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

• AVGO trades at a lofty P/E of 107.08, implying strong growth expectations, in contrast to BA’s negative P/E of -13.30 driven by recent losses.
• Analysts assign negative forward PEG ratios to both AVGO (-1.07) and BA (-6.09), suggesting expectation of shrinking or negative earnings in the upcoming period—a worrying sign for their profit outlook.
• BA carries a sub-zero price-to-book ratio of -46.04, indicating negative equity. In contrast, AVGO (P/B 15.45) has positive book value.
• BA reports a negative Price-to-Free Cash Flow ratio of -12.01, showing a cash flow shortfall that could threaten its operational sustainability, while AVGO at 52.10 maintains positive cash flow.

Dividend Comparison

AVGO delivers a 0.97% dividend yield, blending income with growth, whereas BA appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

Financial Strength Metrics Comparison

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

• BA posts a quick ratio of 0.37, indicating limited coverage of short-term debts from its most liquid assets—while AVGO at 0.91 enjoys stronger liquidity resilience.
• BA has negative equity (debt-to-equity ratio -16.13), suggesting asset shortfalls, whereas AVGO at 0.95 preserves healthier equity coverage.
• AVGO meets its interest obligations (ratio 6.03). In stark contrast, BA’s negative ratio (-3.55) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.