AVGO vs. HOOD: A Head-to-Head Stock Comparison
Here’s a clear look at AVGO and HOOD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AVGO | HOOD |
|---|---|---|
| Company Name | Broadcom Inc. | Robinhood Markets, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Financials |
| GICS Industry Group | Semiconductors & Semiconductor Equipment | Financial Services |
| GICS Industry | Semiconductors & Semiconductor Equipment | Capital Markets |
| GICS Sub-Industry | Semiconductors | Investment Banking & Brokerage |
| Market Capitalization | 1,893.06 billion USD | 73.89 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | August 6, 2009 | July 29, 2021 |
| Security Type | Common Stock | Common Stock |
AVGO’s market capitalization (1,893.06 billion USD) is substantially larger than HOOD’s (73.89 billion USD), indicating a significant difference in their market valuations.
Historical Performance
This chart compares the performance of AVGO and HOOD 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.
Historical Performance at a Glance
| Symbol | AVGO | HOOD |
|---|---|---|
| 5-Day Price Return | -5.40% | -7.19% |
| 13-Week Price Return | 23.08% | -23.30% |
| 26-Week Price Return | 16.68% | -37.75% |
| 52-Week Price Return | 107.74% | 67.73% |
| Month-to-Date Return | 29.18% | 18.43% |
| Year-to-Date Return | 15.52% | -27.44% |
| 10-Day Avg. Volume | 21.09M | 38.04M |
| 3-Month Avg. Volume | 27.56M | 29.04M |
| 3-Month Volatility | 41.97% | 75.73% |
| Beta | 1.39 | 2.41 |
HOOD carries a higher beta at 2.41, indicating it’s more sensitive to market moves, while AVGO (beta: 1.39) exhibits greater stability.
Profitability
Return on Equity (TTM)
AVGO
32.85%
Semiconductors & Semiconductor Equipment Industry
- Max
- 48.79%
- Q3
- 19.91%
- Median
- 7.83%
- Q1
- -0.20%
- Min
- -30.27%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Return on Equity of 32.85% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
HOOD
22.33%
Capital Markets Industry
- Max
- 44.30%
- Q3
- 23.76%
- Median
- 14.56%
- Q1
- 9.34%
- Min
- -6.01%
HOOD’s Return on Equity of 22.33% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
AVGO
36.57%
Semiconductors & Semiconductor Equipment Industry
- Max
- 55.60%
- Q3
- 22.64%
- Median
- 10.31%
- Q1
- -0.69%
- Min
- -34.23%
A Net Profit Margin of 36.57% 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.
HOOD
42.10%
Capital Markets Industry
- Max
- 63.80%
- Q3
- 34.99%
- Median
- 24.30%
- Q1
- 13.32%
- Min
- -13.25%
A Net Profit Margin of 42.10% places HOOD in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
AVGO
40.77%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 26.50%
- Median
- 12.40%
- Q1
- 1.78%
- Min
- -25.47%
An Operating Profit Margin of 40.77% 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.
HOOD
46.81%
Capital Markets Industry
- Max
- 84.20%
- Q3
- 46.32%
- Median
- 32.43%
- Q1
- 19.64%
- Min
- 0.33%
An Operating Profit Margin of 46.81% places HOOD in the upper quartile for the Capital Markets 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 | HOOD |
|---|---|---|
| Return on Equity (TTM) | 32.85% | 22.33% |
| Return on Assets (TTM) | 14.88% | 5.29% |
| Net Profit Margin (TTM) | 36.57% | 42.10% |
| Operating Profit Margin (TTM) | 40.77% | 46.81% |
| Gross Profit Margin (TTM) | 67.93% | 95.28% |
Financial Strength
Current Ratio (MRQ)
AVGO
1.90
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.65
- Q3
- 4.51
- Median
- 2.93
- Q1
- 2.26
- Min
- 1.23
AVGO’s Current Ratio of 1.90 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.
HOOD
1.26
Capital Markets Industry
- Max
- 2.80
- Q3
- 1.78
- Median
- 1.02
- Q1
- 0.70
- Min
- 0.03
For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio (MRQ)
AVGO
0.83
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.34
- Q3
- 0.56
- Median
- 0.24
- Q1
- 0.02
- Min
- 0.00
AVGO’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.83. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
HOOD
1.27
Capital Markets Industry
- Max
- 5.80
- Q3
- 2.50
- Median
- 0.88
- Q1
- 0.28
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.
Interest Coverage Ratio (TTM)
AVGO
8.89
Semiconductors & Semiconductor Equipment Industry
- Max
- 114.00
- Q3
- 54.44
- Median
- 14.73
- Q1
- 2.52
- Min
- -45.50
AVGO’s Interest Coverage Ratio of 8.89 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
HOOD
--
Capital Markets Industry
- Max
- 120.05
- Q3
- 59.73
- Median
- 12.50
- Q1
- 4.36
- Min
- -36.26
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.
Financial Strength at a Glance
| Symbol | AVGO | HOOD |
|---|---|---|
| Current Ratio (MRQ) | 1.90 | 1.26 |
| Quick Ratio (MRQ) | 1.69 | 1.26 |
| Debt-to-Equity Ratio (MRQ) | 0.83 | 1.27 |
| Interest Coverage Ratio (TTM) | 8.89 | -- |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | AVGO | HOOD |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 29.47% | 26.53% |
| Revenue Growth (TTM vs Prior YoY) | 25.22% | 51.58% |
| 3-Year Revenue CAGR | 24.38% | 48.79% |
| 5-Year Revenue CAGR | 21.74% | 36.07% |
EPS Growth
EPS Growth at a Glance
| Symbol | AVGO | HOOD |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 32.13% | -34.22% |
| EPS Growth (TTM vs Prior YoY) | 147.22% | 32.75% |
| 3-Year EPS CAGR | 20.59% | -- |
| 5-Year EPS CAGR | 46.63% | 197.46% |
Dividend
Dividend Yield (TTM)
AVGO
0.61%
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.86%
- Q3
- 0.81%
- Median
- 0.31%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Yield of 0.61% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
HOOD
0.00%
Capital Markets Industry
- Max
- 8.40%
- Q3
- 4.25%
- Median
- 2.62%
- Q1
- 1.35%
- Min
- 0.00%
HOOD currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
AVGO
45.87%
Semiconductors & Semiconductor Equipment Industry
- Max
- 168.19%
- Q3
- 72.81%
- Median
- 22.20%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Payout Ratio of 45.87% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
HOOD
0.00%
Capital Markets Industry
- Max
- 173.08%
- Q3
- 88.56%
- Median
- 56.99%
- Q1
- 27.82%
- Min
- 0.00%
HOOD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AVGO | HOOD |
|---|---|---|
| Dividend Yield (TTM) | 0.61% | 0.00% |
| Dividend Payout Ratio (TTM) | 45.87% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AVGO
75.81
Semiconductors & Semiconductor Equipment Industry
- Max
- 177.19
- Q3
- 102.35
- Median
- 54.08
- Q1
- 35.65
- Min
- 13.81
AVGO’s P/E Ratio of 75.81 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
HOOD
40.14
Capital Markets Industry
- Max
- 48.12
- Q3
- 27.26
- Median
- 17.57
- Q1
- 12.04
- Min
- 4.26
A P/E Ratio of 40.14 places HOOD in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
AVGO
27.72
Semiconductors & Semiconductor Equipment Industry
- Max
- 32.21
- Q3
- 15.98
- Median
- 7.38
- Q1
- 3.87
- Min
- 1.17
AVGO’s P/S Ratio of 27.72 is in the upper echelon for the Semiconductors & Semiconductor Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
HOOD
16.90
Capital Markets Industry
- Max
- 12.82
- Q3
- 6.56
- Median
- 3.74
- Q1
- 2.26
- Min
- 0.06
With a P/S Ratio of 16.90, HOOD trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
AVGO
19.66
Semiconductors & Semiconductor Equipment Industry
- Max
- 15.44
- Q3
- 7.93
- Median
- 3.86
- Q1
- 1.89
- Min
- 0.78
At 19.66, AVGO’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment 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.
HOOD
11.13
Capital Markets Industry
- Max
- 10.57
- Q3
- 5.18
- Median
- 2.55
- Q1
- 1.42
- Min
- 0.22
At 11.13, HOOD’s P/B Ratio is at an extreme premium to the Capital Markets 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 | HOOD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 75.81 | 40.14 |
| Price-to-Sales Ratio (TTM) | 27.72 | 16.90 |
| Price-to-Book Ratio (MRQ) | 19.66 | 11.13 |
| Price-to-Free Cash Flow Ratio (TTM) | 65.48 | 12.78 |