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

Updated

Here’s a clear look at AVGO and GS, comparing key factors like performance, valuation metrics, dividends, and financial strength.

Company Overview

AVGO’s market capitalization of 1,161.05 billion USD is substantially larger than GS’s 188.40 billion USD, indicating a significant difference in their market valuations.

With betas of 1.12 for AVGO and 1.31 for GS, both stocks show similar sensitivity to overall market movements.

SymbolAVGOGS
Company NameBroadcom Inc.The Goldman Sachs Group, Inc.
CountryUSUS
SectorTechnologyFinancial Services
IndustrySemiconductorsFinancial - Capital Markets
CEOMr. Hock E. TanMr. David Solomon
Price246.93 USD614 USD
Market Cap1,161.05 billion USD188.40 billion USD
Beta1.121.31
ExchangeNASDAQNYSE
IPO DateAugust 6, 2009May 4, 1999
ADRNoNo

Performance Comparison

This chart compares the performance of AVGO and GS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AVGO and GS. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

  • AVGO’s Price-to-Earnings (P/E) ratio of 115.09 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
  • AVGO’s Price-to-Book (P/B) ratio of 16.61 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.
SymbolAVGOGS
Price-to-Earnings Ratio (P/E, TTM)115.0913.24
Forward PEG Ratio (TTM)5.791.11
Price-to-Sales Ratio (P/S, TTM)21.291.49
Price-to-Book Ratio (P/B, TTM)16.611.58
EV-to-EBITDA (TTM)47.8329.92
EV-to-Sales (TTM)22.345.00

Dividend Comparison

GS provides a dividend yield of 1.95%, which is significantly higher than AVGO’s 0.91%, highlighting its commitment to more generous shareholder payouts.

SymbolAVGOGS
Dividend Yield (TTM)0.91%1.95%

Financial Strength Metrics Comparison

Explore the financial strength details for AVGO and GS in the table below.

SymbolAVGOGS
Current Ratio (TTM)1.000.90
Quick Ratio (TTM)0.910.90
Debt-to-Equity Ratio (TTM)0.954.91
Debt-to-Asset Ratio (TTM)0.400.35
Net Debt-to-EBITDA Ratio (TTM)2.2520.99
Interest Coverage Ratio (TTM)6.030.26