AVGO vs. BABA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and BABA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
AVGO is a standard domestic listing, while BABA trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | AVGO | BABA |
|---|---|---|
| Company Name | Broadcom Inc. | Alibaba Group Holding Limited |
| Country | United States | Hong Kong |
| GICS Sector | Information Technology | Consumer Discretionary |
| GICS Industry | Semiconductors & Semiconductor Equipment | Broadline Retail |
| Market Capitalization | 1,584.31 billion USD | 434.16 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | August 6, 2009 | September 19, 2014 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of AVGO and BABA 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.
Historical Performance at a Glance
| Symbol | AVGO | BABA |
|---|---|---|
| 5-Day Price Return | 1.69% | 4.75% |
| 13-Week Price Return | 22.36% | 76.17% |
| 26-Week Price Return | 99.08% | 41.09% |
| 52-Week Price Return | 95.18% | 65.92% |
| Month-to-Date Return | 1.69% | 4.75% |
| Year-to-Date Return | 44.71% | 120.80% |
| 10-Day Avg. Volume | 19.45M | 21.15M |
| 3-Month Avg. Volume | 22.76M | 16.68M |
| 3-Month Volatility | 37.89% | 48.99% |
| Beta | 1.20 | 0.31 |
Profitability
Return on Equity (TTM)
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.
BABA
14.91%
Broadline Retail Industry
- Max
- 47.53%
- Q3
- 31.20%
- Median
- 16.63%
- Q1
- 10.81%
- Min
- -7.57%
BABA’s Return on Equity of 14.91% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
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.
BABA
14.82%
Broadline Retail Industry
- Max
- 24.63%
- Q3
- 12.77%
- Median
- 8.63%
- Q1
- 4.50%
- Min
- -1.62%
A Net Profit Margin of 14.82% places BABA in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
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.
BABA
13.98%
Broadline Retail Industry
- Max
- 27.48%
- Q3
- 17.60%
- Median
- 10.82%
- Q1
- 7.76%
- Min
- -6.73%
BABA’s Operating Profit Margin of 13.98% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AVGO | BABA |
|---|---|---|
| Return on Equity (TTM) | 27.01% | 14.91% |
| Return on Assets (TTM) | 11.45% | 8.16% |
| Net Profit Margin (TTM) | 31.59% | 14.82% |
| Operating Profit Margin (TTM) | 37.81% | 13.98% |
| Gross Profit Margin (TTM) | 67.03% | 41.18% |
Financial Strength
Current Ratio (MRQ)
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.
BABA
1.45
Broadline Retail Industry
- Max
- 3.54
- Q3
- 2.42
- Median
- 1.38
- Q1
- 1.20
- Min
- 0.69
BABA’s Current Ratio of 1.45 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
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.
BABA
0.23
Broadline Retail Industry
- Max
- 2.01
- Q3
- 1.31
- Median
- 0.72
- Q1
- 0.32
- Min
- 0.00
Falling into the lower quartile for the Broadline Retail industry, BABA’s Debt-to-Equity Ratio of 0.23 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
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.
BABA
9.56
Broadline Retail Industry
- Max
- 37.34
- Q3
- 21.16
- Median
- 8.60
- Q1
- 3.22
- Min
- -19.29
BABA’s Interest Coverage Ratio of 9.56 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVGO | BABA |
|---|---|---|
| Current Ratio (MRQ) | 1.50 | 1.45 |
| Quick Ratio (MRQ) | 1.37 | 0.97 |
| Debt-to-Equity Ratio (MRQ) | 0.88 | 0.23 |
| Interest Coverage Ratio (TTM) | 3.83 | 9.56 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
BABA
1.79%
Broadline Retail Industry
- Max
- 4.06%
- Q3
- 2.07%
- Median
- 0.37%
- Q1
- 0.00%
- Min
- 0.00%
BABA’s Dividend Yield of 1.79% is consistent with its peers in the Broadline Retail industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
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.
BABA
103.01%
Broadline Retail Industry
- Max
- 114.82%
- Q3
- 62.39%
- Median
- 28.55%
- Q1
- 0.00%
- Min
- 0.00%
BABA’s Dividend Payout Ratio of 103.01% is in the upper quartile for the Broadline Retail 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 | AVGO | BABA |
|---|---|---|
| Dividend Yield (TTM) | 0.68% | 1.79% |
| Dividend Payout Ratio (TTM) | 57.20% | 103.01% |
Valuation
Price-to-Earnings Ratio (TTM)
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.
BABA
21.77
Broadline Retail Industry
- Max
- 62.76
- Q3
- 32.50
- Median
- 17.65
- Q1
- 12.08
- Min
- 6.87
BABA’s P/E Ratio of 21.77 is within the middle range for the Broadline Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
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.
BABA
3.23
Broadline Retail Industry
- Max
- 5.19
- Q3
- 3.25
- Median
- 2.13
- Q1
- 1.01
- Min
- 0.21
BABA’s P/S Ratio of 3.23 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
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.
BABA
1.90
Broadline Retail Industry
- Max
- 8.81
- Q3
- 5.19
- Median
- 3.42
- Q1
- 1.75
- Min
- 0.73
BABA’s P/B Ratio of 1.90 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AVGO | BABA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 84.32 | 21.77 |
| Price-to-Sales Ratio (TTM) | 26.64 | 3.23 |
| Price-to-Book Ratio (MRQ) | 19.11 | 1.90 |
| Price-to-Free Cash Flow Ratio (TTM) | 64.03 | 41.65 |