AVGO vs. CSCO: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AVGO and CSCO, 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 dominates in value with a market cap of 1,080.18 billion USD, eclipsing CSCO’s 251.43 billion USD by roughly 4.30×.
With betas of 1.06 for AVGO and 0.89 for CSCO, both show similar volatility profiles relative to the overall market.
| Symbol | AVGO | CSCO |
|---|---|---|
| Company Name | Broadcom Inc. | Cisco Systems, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Communication Equipment |
| CEO | Mr. Hock E. Tan | Mr. Charles H. Robbins |
| Price | 229.73 USD | 63.2 USD |
| Market Cap | 1,080.18 billion USD | 251.43 billion USD |
| Beta | 1.06 | 0.89 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | February 16, 1990 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AVGO and CSCO 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 CSCO 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 premium P/E of 107.08, while CSCO at 25.69 remains within a more conventional earnings multiple.
- AVGO posts a negative forward PEG of -1.07, hinting at anticipated earnings decline, whereas CSCO at 3.65 has projections for stable or growing earnings.
| Symbol | AVGO | CSCO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 107.08 | 25.69 |
| Forward PEG Ratio (TTM) | -1.07 | 3.65 |
| Price-to-Sales Ratio (P/S, TTM) | 19.81 | 4.52 |
| Price-to-Book Ratio (P/B, TTM) | 15.45 | 5.48 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 52.10 | 18.64 |
| EV-to-EBITDA (TTM) | 44.65 | 25.92 |
| EV-to-Sales (TTM) | 20.86 | 4.90 |
| EV-to-Free Cash Flow (TTM) | 54.86 | 20.20 |
Dividend Comparison
CSCO stands out with a 2.55% dividend yield—around 162% above AVGO’s 0.97%—highlighting its emphasis on generous payouts.
| Symbol | AVGO | CSCO |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 2.55% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AVGO and CSCO, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- CSCO’s current ratio of 0.95 indicates its assets may not cover near-term debts, whereas AVGO at 1.00 maintains healthy liquidity.
- AVGO meets its interest obligations (ratio 6.03). In stark contrast, CSCO’s negative ratio (-13.99) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
| Symbol | AVGO | CSCO |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 0.95 |
| Quick Ratio (TTM) | 0.91 | 0.87 |
| Debt-to-Equity Ratio (TTM) | 0.95 | 0.64 |
| Debt-to-Assets Ratio (TTM) | 0.40 | 0.24 |
| Interest Coverage Ratio (TTM) | 6.03 | -13.99 |