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

Updated on August 28, 2025

Here’s a clear look at AVGO and ERIC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

AVGO is a standard domestic listing, while ERIC trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

Symbol	AVGO	ERIC
Company Name	Broadcom Inc.	Telefonaktiebolaget LM Ericsson (publ)
Country	United States	Sweden
GICS Sector	Information Technology	Information Technology
GICS Industry	Semiconductors & Semiconductor Equipment	Communications Equipment
Market Capitalization	1,383.90 billion USD	25.75 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	August 6, 2009	August 24, 1981
Security Type	Common Stock	ADR

Historical Performance

This chart compares the performance of AVGO and ERIC 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.

AVGO vs. ERIC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	AVGO	ERIC
5-Day Price Return	-0.23%	2.80%
13-Week Price Return	27.63%	-11.93%
26-Week Price Return	28.64%	-11.09%
52-Week Price Return	81.24%	2.77%
Month-to-Date Return	0.18%	5.92%
Year-to-Date Return	26.91%	-15.93%
10-Day Avg. Volume	17.84M	3.62M
3-Month Avg. Volume	20.45M	6.14M
3-Month Volatility	30.33%	26.76%
Beta	1.20	0.78

Profitability

Return on Equity (TTM)

AVGO

18.95%

Semiconductors & Semiconductor Equipment Industry

Max: 52.74%
Q3: 23.49%
Median: 11.60%
Q1: 3.23%
Min: -20.69%

AVGO’s Return on Equity of 18.95% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

ERIC

19.57%

Communications Equipment Industry

Max: 32.05%
Q3: 19.58%
Median: 11.77%
Q1: 2.23%
Min: -11.93%

ERIC’s Return on Equity of 19.57% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

AVGO vs. ERIC: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Net Profit Margin (TTM)

AVGO

22.64%

Semiconductors & Semiconductor Equipment Industry

Max: 44.17%
Q3: 22.38%
Median: 11.95%
Q1: 3.21%
Min: -25.16%

A Net Profit Margin of 22.64% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

ERIC

7.04%

Communications Equipment Industry

Max: 23.65%
Q3: 14.32%
Median: 5.31%
Q1: 1.45%
Min: -12.72%

ERIC’s Net Profit Margin of 7.04% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

AVGO vs. ERIC: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Operating Profit Margin (TTM)

AVGO

35.94%

Semiconductors & Semiconductor Equipment Industry

Max: 58.03%
Q3: 27.84%
Median: 12.45%
Q1: 5.15%
Min: -28.61%

An Operating Profit Margin of 35.94% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ERIC

10.60%

Communications Equipment Industry

Max: 42.27%
Q3: 18.90%
Median: 6.21%
Q1: 2.97%
Min: -20.72%

ERIC’s Operating Profit Margin of 10.60% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

AVGO vs. ERIC: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Profitability at a Glance

Symbol	AVGO	ERIC
Return on Equity (TTM)	18.95%	19.57%
Return on Assets (TTM)	7.79%	6.22%
Net Profit Margin (TTM)	22.64%	7.04%
Operating Profit Margin (TTM)	35.94%	10.60%
Gross Profit Margin (TTM)	66.35%	47.18%

Financial Strength

Current Ratio (MRQ)

AVGO

1.08

Semiconductors & Semiconductor Equipment Industry

Max: 8.42
Q3: 4.70
Median: 2.75
Q1: 2.07
Min: 1.04

AVGO’s Current Ratio of 1.08 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ERIC

1.09

Communications Equipment Industry

Max: 1.72
Q3: 1.72
Median: 1.46
Q1: 1.18
Min: 0.93

ERIC’s Current Ratio of 1.09 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AVGO vs. ERIC: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AVGO

0.97

Semiconductors & Semiconductor Equipment Industry

Max: 1.09
Q3: 0.45
Median: 0.22
Q1: 0.01
Min: 0.00

AVGO’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment 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.

ERIC

0.50

Communications Equipment Industry

Max: 1.55
Q3: 0.92
Median: 0.55
Q1: 0.30
Min: 0.00

ERIC’s Debt-to-Equity Ratio of 0.50 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AVGO vs. ERIC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

AVGO

3.83

Semiconductors & Semiconductor Equipment Industry

Max: 174.00
Q3: 81.10
Median: 27.22
Q1: 7.28
Min: -4.26

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Interest Coverage Ratio of 3.83 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

ERIC

3.82

Communications Equipment Industry

Max: 181.73
Q3: 113.63
Median: 7.59
Q1: 3.82
Min: -5.39

ERIC’s Interest Coverage Ratio of 3.82 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

AVGO vs. ERIC: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Financial Strength at a Glance

Symbol	AVGO	ERIC
Current Ratio (MRQ)	1.08	1.09
Quick Ratio (MRQ)	0.93	0.86
Debt-to-Equity Ratio (MRQ)	0.97	0.50
Interest Coverage Ratio (TTM)	3.83	3.82

Growth

Revenue Growth

AVGO vs. ERIC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AVGO vs. ERIC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AVGO

0.77%

Semiconductors & Semiconductor Equipment Industry

Max: 4.16%
Q3: 1.78%
Median: 0.74%
Q1: 0.00%
Min: 0.00%

AVGO’s Dividend Yield of 0.77% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

ERIC

3.73%

Communications Equipment Industry

Max: 3.88%
Q3: 2.75%
Median: 0.93%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 3.73%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

AVGO vs. ERIC: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

AVGO

54.37%

Semiconductors & Semiconductor Equipment Industry

Max: 196.12%
Q3: 87.72%
Median: 26.57%
Q1: 0.00%
Min: 0.00%

AVGO’s Dividend Payout Ratio of 54.37% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ERIC

70.91%

Communications Equipment Industry

Max: 111.16%
Q3: 55.91%
Median: 28.42%
Q1: 0.00%
Min: 0.00%

ERIC’s Dividend Payout Ratio of 70.91% is in the upper quartile for the Communications Equipment 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.

AVGO vs. ERIC: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Dividend at a Glance

Symbol	AVGO	ERIC
Dividend Yield (TTM)	0.77%	3.73%
Dividend Payout Ratio (TTM)	54.37%	70.91%

Valuation

Price-to-Earnings Ratio (TTM)

AVGO

105.02

Semiconductors & Semiconductor Equipment Industry

Max: 109.37
Q3: 57.11
Median: 28.95
Q1: 22.13
Min: 11.14

A P/E Ratio of 105.02 places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ERIC

14.44

Communications Equipment Industry

Max: 57.30
Q3: 47.92
Median: 27.50
Q1: 17.89
Min: 13.89

In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 14.44 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AVGO vs. ERIC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

AVGO

23.78

Semiconductors & Semiconductor Equipment Industry

Max: 16.09
Q3: 10.10
Median: 4.82
Q1: 2.60
Min: 0.93

With a P/S Ratio of 23.78, AVGO trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ERIC

1.02

Communications Equipment Industry

Max: 11.03
Q3: 5.53
Median: 2.20
Q1: 0.99
Min: 0.40

ERIC’s P/S Ratio of 1.02 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AVGO vs. ERIC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

AVGO

13.56

Semiconductors & Semiconductor Equipment Industry

Max: 13.56
Q3: 6.75
Median: 3.68
Q1: 1.89
Min: 0.60

AVGO’s P/B Ratio of 13.56 is in the upper tier for the Semiconductors & Semiconductor Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ERIC

3.15

Communications Equipment Industry

Max: 9.66
Q3: 5.60
Median: 3.73
Q1: 2.67
Min: 0.30

ERIC’s P/B Ratio of 3.15 is within the conventional range for the Communications Equipment 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.

AVGO vs. ERIC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Valuation at a Glance

Symbol	AVGO	ERIC
Price-to-Earnings Ratio (TTM)	105.02	14.44
Price-to-Sales Ratio (TTM)	23.78	1.02
Price-to-Book Ratio (MRQ)	13.56	3.15
Price-to-Free Cash Flow Ratio (TTM)	59.76	6.44