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

Updated

Here’s a clear look at AVGO and EA, 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 EA’s 37.74 billion USD by roughly 28.62×.

With betas of 1.06 for AVGO and 0.75 for EA, both show similar volatility profiles relative to the overall market.

SymbolAVGOEA
Company NameBroadcom Inc.Electronic Arts Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsElectronic Gaming & Multimedia
CEOMr. Hock E. TanMr. Andrew Wilson
Price229.73 USD150.5 USD
Market Cap1,080.18 billion USD37.74 billion USD
Beta1.060.75
ExchangeNASDAQNASDAQ
IPO DateAugust 6, 2009September 20, 1989
ADRNoNo

Performance Comparison

This chart compares the performance of AVGO and EA 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 EA 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 EA at 35.17 remains within a more conventional earnings multiple.
  • AVGO posts a negative forward PEG of -1.07, hinting at anticipated earnings decline, whereas EA at 1.86 has projections for stable or growing earnings.
SymbolAVGOEA
Price-to-Earnings Ratio (P/E, TTM)107.0835.17
Forward PEG Ratio (TTM)-1.071.86
Price-to-Sales Ratio (P/S, TTM)19.815.06
Price-to-Book Ratio (P/B, TTM)15.456.17
Price-to-Free Cash Flow Ratio (P/FCF, TTM)52.1020.31
EV-to-EBITDA (TTM)44.6520.20
EV-to-Sales (TTM)20.865.04
EV-to-Free Cash Flow (TTM)54.8620.21

Dividend Comparison

AVGO’s dividend yield of 0.97% is about 93% higher than EA’s 0.50%, underscoring its stronger focus on returning cash to shareholders.

SymbolAVGOEA
Dividend Yield (TTM)0.97%0.50%

Financial Strength Metrics Comparison

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

  • EA’s current ratio of 0.95 indicates its assets may not cover near-term debts, whereas AVGO at 1.00 maintains healthy liquidity.
SymbolAVGOEA
Current Ratio (TTM)1.000.95
Quick Ratio (TTM)0.910.95
Debt-to-Equity Ratio (TTM)0.950.31
Debt-to-Assets Ratio (TTM)0.400.16
Interest Coverage Ratio (TTM)6.0320.61