Seek Returns logo

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

Updated on

Here’s a clear look at AVGO and JBL, 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 JBL’s 24.26 billion USD, indicating a significant difference in their market valuations.

With betas of 1.12 for AVGO and 1.14 for JBL, both stocks show similar sensitivity to overall market movements.

SymbolAVGOJBL
Company NameBroadcom Inc.Jabil Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsHardware, Equipment & Parts
CEOHock E. TanMichael Dastoor
Price275.18 USD226.01 USD
Market Cap1,294.30 billion USD24.26 billion USD
Beta1.121.14
ExchangeNASDAQNYSE
IPO DateAugust 6, 2009May 3, 1993
ADRNoNo

Historical Performance

This chart compares the performance of AVGO and JBL 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. JBL: Growth of a $10,000 investment over the past one year.

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.

JBL

38.64%

Hardware, Equipment & Parts Industry

Max
38.64%
Q3
17.03%
Median
8.95%
Q1
1.23%
Min
-14.34%

In the upper quartile for the Hardware, Equipment & Parts industry, JBL’s Return on Equity of 38.64% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AVGO vs. JBL: A comparison of their ROE against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

15.00%

Hardware, Equipment & Parts Industry

Max
17.24%
Q3
9.87%
Median
6.54%
Q1
1.56%
Min
-7.50%

In the upper quartile for the Hardware, Equipment & Parts industry, JBL’s Return on Invested Capital of 15.00% signifies a highly effective use of its capital to generate profits when compared to its peers.

AVGO vs. JBL: A comparison of their ROIC against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

2.02%

Hardware, Equipment & Parts Industry

Max
22.76%
Q3
11.04%
Median
3.80%
Q1
1.13%
Min
-8.57%

JBL’s Net Profit Margin of 2.02% is aligned with the median group of its peers in the Hardware, Equipment & Parts industry. This indicates its ability to convert revenue into profit is typical for the sector.

AVGO vs. JBL: A comparison of their Net Profit Margin against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

4.08%

Hardware, Equipment & Parts Industry

Max
25.25%
Q3
13.73%
Median
8.22%
Q1
4.35%
Min
-0.79%

JBL’s Operating Profit Margin of 4.08% is in the lower quartile for the Hardware, Equipment & Parts industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

AVGO vs. JBL: A comparison of their Operating Margin against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

Profitability at a Glance

SymbolAVGOJBL
Return on Equity (TTM)18.95%38.64%
Return on Assets (TTM)7.85%3.10%
Return on Invested Capital (TTM)10.59%15.00%
Net Profit Margin (TTM)22.64%2.02%
Operating Profit Margin (TTM)35.94%4.08%
Gross Profit Margin (TTM)66.09%8.86%

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.

JBL

0.98

Hardware, Equipment & Parts Industry

Max
4.10
Q3
3.23
Median
2.37
Q1
1.81
Min
0.58

JBL’s Current Ratio of 0.98 falls into the lower quartile for the Hardware, Equipment & Parts industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AVGO vs. JBL: A comparison of their Current Ratio against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

2.59

Hardware, Equipment & Parts Industry

Max
1.19
Q3
0.56
Median
0.33
Q1
0.11
Min
0.00

With a Debt-to-Equity Ratio of 2.59, JBL operates with exceptionally high leverage compared to the Hardware, Equipment & Parts industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AVGO vs. JBL: A comparison of their D/E Ratio against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

28.37

Hardware, Equipment & Parts Industry

Max
28.37
Q3
14.25
Median
9.35
Q1
2.86
Min
-13.16

JBL’s Interest Coverage Ratio of 28.37 is in the upper quartile for the Hardware, Equipment & Parts industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AVGO vs. JBL: A comparison of their Interest Coverage against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

Financial Strength at a Glance

SymbolAVGOJBL
Current Ratio (TTM)1.080.98
Quick Ratio (TTM)0.980.64
Debt-to-Equity Ratio (TTM)0.972.59
Debt-to-Asset Ratio (TTM)0.410.18
Net Debt-to-EBITDA Ratio (TTM)1.921.73
Interest Coverage Ratio (TTM)5.6628.37

Growth

The following charts compare key year-over-year (YoY) growth metrics for AVGO and JBL. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AVGO vs. JBL: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AVGO vs. JBL: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AVGO vs. JBL: A comparison of their annual year-over-year 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.

JBL

0.14%

Hardware, Equipment & Parts Industry

Max
2.16%
Q3
0.66%
Median
0.00%
Q1
0.00%
Min
0.00%

JBL’s Dividend Yield of 0.14% is consistent with its peers in the Hardware, Equipment & Parts industry, providing a dividend return that is standard for its sector.

AVGO vs. JBL: A comparison of their Dividend Yield against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

6.59%

Hardware, Equipment & Parts Industry

Max
71.55%
Q3
25.37%
Median
0.00%
Q1
0.00%
Min
0.00%

JBL’s Dividend Payout Ratio of 6.59% is within the typical range for the Hardware, Equipment & Parts industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AVGO vs. JBL: A comparison of their Payout Ratio against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

Dividend at a Glance

SymbolAVGOJBL
Dividend Yield (TTM)0.84%0.14%
Dividend Payout Ratio (TTM)81.25%6.59%

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.

JBL

43.17

Hardware, Equipment & Parts Industry

Max
86.58
Q3
53.54
Median
36.07
Q1
25.99
Min
12.16

JBL’s P/E Ratio of 43.17 is within the middle range for the Hardware, Equipment & Parts industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AVGO vs. JBL: A comparison of their P/E Ratio against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

2.77

Hardware, Equipment & Parts Industry

Max
5.22
Q3
3.27
Median
2.16
Q1
1.77
Min
0.00

The Forward PEG Ratio is often not a primary valuation metric in the Hardware, Equipment & Parts industry.

AVGO vs. JBL: A comparison of their Forward PEG Ratio against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

0.85

Hardware, Equipment & Parts Industry

Max
8.50
Q3
4.95
Median
2.45
Q1
1.17
Min
0.32

In the lower quartile for the Hardware, Equipment & Parts industry, JBL’s P/S Ratio of 0.85 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AVGO vs. JBL: A comparison of their P/S Ratio against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

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.

JBL

19.38

Hardware, Equipment & Parts Industry

Max
7.53
Q3
4.63
Median
3.34
Q1
2.35
Min
0.48

At 19.38, JBL’s P/B Ratio is at an extreme premium to the Hardware, Equipment & Parts 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.

AVGO vs. JBL: A comparison of their P/B Ratio against their respective Semiconductors and Hardware, Equipment & Parts industry benchmarks.

Valuation at a Glance

SymbolAVGOJBL
Price-to-Earnings Ratio (P/E, TTM)100.2843.17
Forward PEG Ratio (TTM)4.832.77
Price-to-Sales Ratio (P/S, TTM)22.690.85
Price-to-Book Ratio (P/B, TTM)18.6119.38
Price-to-Free Cash Flow Ratio (P/FCF, TTM)57.0319.41
EV-to-EBITDA (TTM)44.9424.92
EV-to-Sales (TTM)23.700.91