AVGO vs. CVX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and CVX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AVGO’s market capitalization of 1,294.30 billion USD is substantially larger than CVX’s 259.11 billion USD, indicating a significant difference in their market valuations.
With betas of 1.12 for AVGO and 0.80 for CVX, both stocks show similar sensitivity to overall market movements.
| Symbol | AVGO | CVX |
|---|---|---|
| Company Name | Broadcom Inc. | Chevron Corporation |
| Country | US | US |
| Sector | Technology | Energy |
| Industry | Semiconductors | Oil & Gas Integrated |
| CEO | Hock E. Tan | Michael K. Wirth |
| Price | 275.18 USD | 148.37 USD |
| Market Cap | 1,294.30 billion USD | 259.11 billion USD |
| Beta | 1.12 | 0.80 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 6, 2009 | June 24, 1921 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and CVX 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.
Profitability
Return on Equity
AVGO
18.95%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
In the upper quartile for the Semiconductors industry, AVGO’s Return on Equity of 18.95% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
CVX
10.16%
Oil & Gas Integrated Industry
- Max
- 20.46%
- Q3
- 15.43%
- Median
- 12.48%
- Q1
- 8.43%
- Min
- -1.92%
CVX’s Return on Equity of 10.16% is on par with the norm for the Oil & Gas Integrated industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AVGO
10.59%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
AVGO’s Return on Invested Capital of 10.59% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.
CVX
3.09%
Oil & Gas Integrated Industry
- Max
- 12.91%
- Q3
- 9.65%
- Median
- 7.06%
- Q1
- 3.79%
- Min
- -0.29%
CVX’s Return on Invested Capital of 3.09% is in the lower quartile for the Oil & Gas Integrated industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
AVGO
22.64%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
A Net Profit Margin of 22.64% places AVGO in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
CVX
8.06%
Oil & Gas Integrated Industry
- Max
- 11.33%
- Q3
- 9.89%
- Median
- 8.06%
- Q1
- 4.82%
- Min
- -0.64%
CVX’s Net Profit Margin of 8.06% is aligned with the median group of its peers in the Oil & Gas Integrated industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AVGO
35.94%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
An Operating Profit Margin of 35.94% places AVGO in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
CVX
5.72%
Oil & Gas Integrated Industry
- Max
- 30.12%
- Q3
- 21.81%
- Median
- 9.73%
- Q1
- 7.69%
- Min
- 4.28%
CVX’s Operating Profit Margin of 5.72% is in the lower quartile for the Oil & Gas Integrated industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AVGO | CVX |
|---|---|---|
| Return on Equity (TTM) | 18.95% | 10.16% |
| Return on Assets (TTM) | 7.85% | 6.11% |
| Return on Invested Capital (TTM) | 10.59% | 3.09% |
| Net Profit Margin (TTM) | 22.64% | 8.06% |
| Operating Profit Margin (TTM) | 35.94% | 5.72% |
| Gross Profit Margin (TTM) | 66.09% | 27.53% |
Financial Strength
Current Ratio
AVGO
1.08
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
AVGO’s Current Ratio of 1.08 falls into the lower quartile for the Semiconductors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
CVX
1.08
Oil & Gas Integrated Industry
- Max
- 1.54
- Q3
- 1.42
- Median
- 1.24
- Q1
- 0.93
- Min
- 0.41
CVX’s Current Ratio of 1.08 aligns with the median group of the Oil & Gas Integrated industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AVGO
0.97
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
AVGO’s leverage is in the upper quartile of the Semiconductors industry, with a Debt-to-Equity Ratio of 0.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
CVX
0.20
Oil & Gas Integrated Industry
- Max
- 1.22
- Q3
- 0.83
- Median
- 0.46
- Q1
- 0.26
- Min
- 0.14
Falling into the lower quartile for the Oil & Gas Integrated industry, CVX’s Debt-to-Equity Ratio of 0.20 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
AVGO
5.66
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
AVGO’s Interest Coverage Ratio of 5.66 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.
CVX
16.16
Oil & Gas Integrated Industry
- Max
- 33.34
- Q3
- 16.73
- Median
- 9.99
- Q1
- 4.43
- Min
- 1.03
CVX’s Interest Coverage Ratio of 16.16 is positioned comfortably within the norm for the Oil & Gas Integrated industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVGO | CVX |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 1.08 |
| Quick Ratio (TTM) | 0.98 | 0.82 |
| Debt-to-Equity Ratio (TTM) | 0.97 | 0.20 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.12 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 0.57 |
| Interest Coverage Ratio (TTM) | 5.66 | 16.16 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and CVX. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AVGO
0.84%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Yield of 0.84% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.
CVX
4.50%
Oil & Gas Integrated Industry
- Max
- 18.27%
- Q3
- 6.79%
- Median
- 4.63%
- Q1
- 3.87%
- Min
- 0.00%
CVX’s Dividend Yield of 4.50% is consistent with its peers in the Oil & Gas Integrated industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AVGO
81.25%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Payout Ratio of 81.25% is in the upper quartile for the Semiconductors 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.
CVX
75.18%
Oil & Gas Integrated Industry
- Max
- 470.85%
- Q3
- 105.45%
- Median
- 60.50%
- Q1
- 47.51%
- Min
- 0.00%
CVX’s Dividend Payout Ratio of 75.18% is within the typical range for the Oil & Gas Integrated industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVGO | CVX |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 4.50% |
| Dividend Payout Ratio (TTM) | 81.25% | 75.18% |
Valuation
Price-to-Earnings Ratio
AVGO
100.28
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
At 100.28, AVGO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
CVX
16.52
Oil & Gas Integrated Industry
- Max
- 16.54
- Q3
- 15.68
- Median
- 11.70
- Q1
- 10.25
- Min
- 5.34
A P/E Ratio of 16.52 places CVX in the upper quartile for the Oil & Gas Integrated industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
AVGO
4.83
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
CVX
1.27
Oil & Gas Integrated Industry
- Max
- 1.80
- Q3
- 1.60
- Median
- 1.23
- Q1
- 0.85
- Min
- 0.46
The Forward PEG Ratio is often not a primary valuation metric in the Oil & Gas Integrated industry.
Price-to-Sales Ratio
AVGO
22.69
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
With a P/S Ratio of 22.69, AVGO trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
CVX
1.33
Oil & Gas Integrated Industry
- Max
- 1.39
- Q3
- 1.23
- Median
- 0.82
- Q1
- 0.61
- Min
- 0.42
CVX’s P/S Ratio of 1.33 is in the upper echelon for the Oil & Gas Integrated industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AVGO
18.61
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
At 18.61, AVGO’s P/B Ratio is at an extreme premium to the Semiconductors 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.
CVX
1.73
Oil & Gas Integrated Industry
- Max
- 2.27
- Q3
- 1.77
- Median
- 1.38
- Q1
- 1.17
- Min
- 0.71
CVX’s P/B Ratio of 1.73 is within the conventional range for the Oil & Gas Integrated 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 | CVX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 16.52 |
| Forward PEG Ratio (TTM) | 4.83 | 1.27 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 1.33 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | 1.73 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 19.00 |
| EV-to-EBITDA (TTM) | 44.94 | 6.52 |
| EV-to-Sales (TTM) | 23.70 | 1.46 |