AVGO vs. HD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and HD, 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 HD’s 369.79 billion USD, indicating a significant difference in their market valuations.
With betas of 1.12 for AVGO and 1.02 for HD, both stocks show similar sensitivity to overall market movements.
Symbol | AVGO | HD |
---|---|---|
Company Name | Broadcom Inc. | The Home Depot, Inc. |
Country | US | US |
Sector | Technology | Consumer Cyclical |
Industry | Semiconductors | Home Improvement |
CEO | Hock E. Tan | Edward P. Decker |
Price | 275.18 USD | 371.68 USD |
Market Cap | 1,294.30 billion USD | 369.79 billion USD |
Beta | 1.12 | 1.02 |
Exchange | NASDAQ | NYSE |
IPO Date | August 6, 2009 | September 22, 1981 |
ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and HD 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.
HD
236.10%
Home Improvement Industry
- Max
- 17.64%
- Q3
- 15.63%
- Median
- 8.27%
- Q1
- 2.23%
- Min
- 0.65%
HD’s Return on Equity of 236.10% is exceptionally high, placing it well beyond the typical range for the Home Improvement industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
HD
21.80%
Home Improvement Industry
- Max
- 27.68%
- Q3
- 17.94%
- Median
- 5.81%
- Q1
- 3.74%
- Min
- 0.32%
In the upper quartile for the Home Improvement industry, HD’s Return on Invested Capital of 21.80% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
HD
8.98%
Home Improvement Industry
- Max
- 8.98%
- Q3
- 7.30%
- Median
- 4.53%
- Q1
- 3.35%
- Min
- 0.23%
A Net Profit Margin of 8.98% places HD in the upper quartile for the Home Improvement industry, signifying strong profitability and more effective cost management than most of its peers.
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.
HD
13.24%
Home Improvement Industry
- Max
- 13.24%
- Q3
- 10.79%
- Median
- 5.88%
- Q1
- 3.74%
- Min
- 0.41%
An Operating Profit Margin of 13.24% places HD in the upper quartile for the Home Improvement industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
Symbol | AVGO | HD |
---|---|---|
Return on Equity (TTM) | 18.95% | 236.10% |
Return on Assets (TTM) | 7.85% | 14.76% |
Return on Invested Capital (TTM) | 10.59% | 21.80% |
Net Profit Margin (TTM) | 22.64% | 8.98% |
Operating Profit Margin (TTM) | 35.94% | 13.24% |
Gross Profit Margin (TTM) | 66.09% | 33.34% |
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.
HD
1.09
Home Improvement Industry
- Max
- 1.81
- Q3
- 1.42
- Median
- 1.24
- Q1
- 1.13
- Min
- 1.01
HD’s Current Ratio of 1.09 falls into the lower quartile for the Home Improvement industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
HD
2.89
Home Improvement Industry
- Max
- 1.50
- Q3
- 1.50
- Median
- 1.14
- Q1
- 0.88
- Min
- 0.71
With a Debt-to-Equity Ratio of 2.89, HD operates with exceptionally high leverage compared to the Home Improvement industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
HD
8.80
Home Improvement Industry
- Max
- 77.66
- Q3
- 36.61
- Median
- 10.22
- Q1
- 9.24
- Min
- 8.80
In the lower quartile for the Home Improvement industry, HD’s Interest Coverage Ratio of 8.80 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
Symbol | AVGO | HD |
---|---|---|
Current Ratio (TTM) | 1.08 | 1.09 |
Quick Ratio (TTM) | 0.98 | 0.28 |
Debt-to-Equity Ratio (TTM) | 0.97 | 2.89 |
Debt-to-Asset Ratio (TTM) | 0.41 | 0.23 |
Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 0.84 |
Interest Coverage Ratio (TTM) | 5.66 | 8.80 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and HD. 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.
HD
2.45%
Home Improvement Industry
- Max
- 6.27%
- Q3
- 2.37%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.45%, HD offers a more attractive income stream than most of its peers in the Home Improvement industry, signaling a strong commitment to shareholder returns.
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.
HD
61.38%
Home Improvement Industry
- Max
- 120.85%
- Q3
- 88.43%
- Median
- 49.53%
- Q1
- 9.42%
- Min
- 0.00%
HD’s Dividend Payout Ratio of 61.38% is within the typical range for the Home Improvement industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
Symbol | AVGO | HD |
---|---|---|
Dividend Yield (TTM) | 0.84% | 2.45% |
Dividend Payout Ratio (TTM) | 81.25% | 61.38% |
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.
HD
25.19
Home Improvement Industry
- Max
- 39.38
- Q3
- 35.79
- Median
- 23.00
- Q1
- 18.95
- Min
- 15.05
HD’s P/E Ratio of 25.19 is within the middle range for the Home Improvement industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
HD
2.98
Home Improvement Industry
- Max
- 2.96
- Q3
- 2.76
- Median
- 2.09
- Q1
- 1.72
- Min
- 0.17
HD’s Forward PEG Ratio of 2.98 is exceptionally high for the Home Improvement industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
HD
2.27
Home Improvement Industry
- Max
- 2.25
- Q3
- 1.72
- Median
- 1.23
- Q1
- 0.91
- Min
- 0.46
With a P/S Ratio of 2.27, HD trades at a valuation that eclipses even the highest in the Home Improvement industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
HD
46.35
Home Improvement Industry
- Max
- 3.63
- Q3
- 3.63
- Median
- 3.51
- Q1
- 2.45
- Min
- 1.05
At 46.35, HD’s P/B Ratio is at an extreme premium to the Home Improvement 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.
Valuation at a Glance
Symbol | AVGO | HD |
---|---|---|
Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 25.19 |
Forward PEG Ratio (TTM) | 4.83 | 2.98 |
Price-to-Sales Ratio (P/S, TTM) | 22.69 | 2.27 |
Price-to-Book Ratio (P/B, TTM) | 18.61 | 46.35 |
Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 24.34 |
EV-to-EBITDA (TTM) | 44.94 | 15.30 |
EV-to-Sales (TTM) | 23.70 | 2.40 |