AVGO vs. CDNS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AVGO and CDNS, 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 dwarfs CDNS in market cap, clocking in at 1,080.18 billion USD—about 12.46 times the 86.70 billion USD of its counterpart.
AVGO at 1.06 and CDNS at 1.04 move in sync when it comes to market volatility.
| Symbol | AVGO | CDNS |
|---|---|---|
| Company Name | Broadcom Inc. | Cadence Design Systems, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Application |
| CEO | Mr. Hock E. Tan | Dr. Anirudh Devgan Ph.D. |
| Price | 229.73 USD | 317.55 USD |
| Market Cap | 1,080.18 billion USD | 86.70 billion USD |
| Beta | 1.059 | 1.045 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | June 10, 1987 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AVGO and CDNS 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 CDNS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AVGO stands out with a P/E of 107.08, far exceeding conventional benchmarks. This elevated figure means its stock price is disproportionately large compared to its earnings over the past twelve months, often reflecting strong investor optimism about its future. Meanwhile, CDNS at 79.86 aligns with more typical earnings multiples.
- AVGO carries a negative Forward PEG of -1.07, hinting at analyst expectations of losses or shrinking earnings in the coming period—a potential warning for its future performance. On the flip side, CDNS at 11.04 sidesteps this concern with a more favorable outlook.
| Symbol | AVGO | CDNS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 107.08 | 79.86 |
| Forward PEG Ratio (TTM) | -1.07 | 11.04 |
| Price-to-Sales Ratio (P/S, TTM) | 19.81 | 17.79 |
| Price-to-Book Ratio (P/B, TTM) | 15.45 | 18.08 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 52.10 | 62.91 |
| EV-to-EBITDA (TTM) | 44.65 | 52.69 |
| EV-to-Sales (TTM) | 20.86 | 17.73 |
| EV-to-Free Cash Flow (TTM) | 54.86 | 62.69 |
Dividend Comparison
AVGO’s 0.97% yield offers steady income while retaining earnings for growth, unlike CDNS, which pays none, reinvesting fully—likely in expansion or R&D—for investors eyeing future gains. This pits AVGO’s balanced approach against CDNS’s long-term focus.
| Symbol | AVGO | CDNS |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 0.00% |
Financial Strength Metrics Comparison
Explore the financial strength details for AVGO and CDNS in the table below.
| Symbol | AVGO | CDNS |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 3.07 |
| Quick Ratio (TTM) | 0.91 | 2.90 |
| Debt-to-Equity Ratio (TTM) | 0.95 | 0.52 |
| Debt-to-Assets Ratio (TTM) | 0.40 | 0.27 |
| Interest Coverage Ratio (TTM) | 6.03 | 21.78 |