AVGO vs. ERIC: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AVGO and ERIC, 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 ERIC’s 29.42 billion USD by roughly 36.72×.
AVGO’s beta of 1.06 points to much larger expected swings compared to ERIC’s calmer 0.44, suggesting both higher upside and downside potential.
ERIC is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike AVGO, which is purely domestic.
| Symbol | AVGO | ERIC |
|---|---|---|
| Company Name | Broadcom Inc. | Telefonaktiebolaget LM Ericsson (publ) |
| Country | US | SE |
| Sector | Technology | Technology |
| Industry | Semiconductors | Communication Equipment |
| CEO | Mr. Hock E. Tan | Mr. Anthony F. Bartolo |
| Price | 229.73 USD | 8.86 USD |
| Market Cap | 1,080.18 billion USD | 29.42 billion USD |
| Beta | 1.06 | 0.44 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | August 24, 1981 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of AVGO and ERIC 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 ERIC based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AVGO and ERIC both trade above a 100× earnings multiple (107.08 and 175.63), reflecting lofty growth narratives priced into their shares.
- Analysts assign negative forward PEG ratios to both AVGO (-1.07) and ERIC (-63.27), suggesting expectation of shrinking or negative earnings in the upcoming period—a worrying sign for their profit outlook.
| Symbol | AVGO | ERIC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 107.08 | 175.63 |
| Forward PEG Ratio (TTM) | -1.07 | -63.27 |
| Price-to-Sales Ratio (P/S, TTM) | 19.81 | 1.13 |
| Price-to-Book Ratio (P/B, TTM) | 15.45 | 3.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 52.10 | 6.71 |
| EV-to-EBITDA (TTM) | 44.65 | 6.12 |
| EV-to-Sales (TTM) | 20.86 | 1.12 |
| EV-to-Free Cash Flow (TTM) | 54.86 | 6.66 |
Dividend Comparison
ERIC stands out with a 3.28% dividend yield—around 237% above AVGO’s 0.97%—highlighting its emphasis on generous payouts.
| Symbol | AVGO | ERIC |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 3.28% |
Financial Strength Metrics Comparison
Explore the financial strength details for AVGO and ERIC in the table below.
| Symbol | AVGO | ERIC |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 1.09 |
| Quick Ratio (TTM) | 0.91 | 0.88 |
| Debt-to-Equity Ratio (TTM) | 0.95 | 0.49 |
| Debt-to-Assets Ratio (TTM) | 0.40 | 0.15 |
| Interest Coverage Ratio (TTM) | 6.03 | 6.76 |