AVGO vs. JKHY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and JKHY, 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 JKHY’s 13.20 billion USD, indicating a significant difference in their market valuations.
AVGO’s beta of 1.12 points to significantly higher volatility compared to JKHY (beta: 0.73), suggesting AVGO has greater potential for both gains and losses relative to market movements.
| Symbol | AVGO | JKHY |
|---|---|---|
| Company Name | Broadcom Inc. | Jack Henry & Associates, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Information Technology Services |
| CEO | Hock E. Tan | Gregory R. Adelson |
| Price | 275.18 USD | 181.32 USD |
| Market Cap | 1,294.30 billion USD | 13.20 billion USD |
| Beta | 1.12 | 0.73 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | November 20, 1985 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and JKHY 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.
JKHY
22.07%
Information Technology Services Industry
- Max
- 47.24%
- Q3
- 23.27%
- Median
- 12.85%
- Q1
- 2.22%
- Min
- -26.63%
JKHY’s Return on Equity of 22.07% is on par with the norm for the Information Technology Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
JKHY
16.06%
Information Technology Services Industry
- Max
- 28.29%
- Q3
- 13.19%
- Median
- 7.24%
- Q1
- 0.23%
- Min
- -18.82%
In the upper quartile for the Information Technology Services industry, JKHY’s Return on Invested Capital of 16.06% 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.
JKHY
18.50%
Information Technology Services Industry
- Max
- 20.47%
- Q3
- 11.62%
- Median
- 5.97%
- Q1
- 1.89%
- Min
- -4.62%
A Net Profit Margin of 18.50% places JKHY in the upper quartile for the Information Technology Services 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.
JKHY
23.22%
Information Technology Services Industry
- Max
- 29.42%
- Q3
- 14.75%
- Median
- 8.92%
- Q1
- 2.62%
- Min
- -11.92%
An Operating Profit Margin of 23.22% places JKHY in the upper quartile for the Information Technology Services 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 | JKHY |
|---|---|---|
| Return on Equity (TTM) | 18.95% | 22.07% |
| Return on Assets (TTM) | 7.85% | 14.64% |
| Return on Invested Capital (TTM) | 10.59% | 16.06% |
| Net Profit Margin (TTM) | 22.64% | 18.50% |
| Operating Profit Margin (TTM) | 35.94% | 23.22% |
| Gross Profit Margin (TTM) | 66.09% | 42.06% |
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.
JKHY
1.36
Information Technology Services Industry
- Max
- 3.41
- Q3
- 2.37
- Median
- 1.58
- Q1
- 1.20
- Min
- 0.00
JKHY’s Current Ratio of 1.36 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.
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.
JKHY
0.08
Information Technology Services Industry
- Max
- 2.63
- Q3
- 1.16
- Median
- 0.48
- Q1
- 0.09
- Min
- 0.01
Falling into the lower quartile for the Information Technology Services industry, JKHY’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
JKHY
44.06
Information Technology Services Industry
- Max
- 17.52
- Q3
- 10.04
- Median
- 4.66
- Q1
- 0.80
- Min
- -10.50
With an Interest Coverage Ratio of 44.06, JKHY demonstrates a superior capacity to service its debt, placing it well above the typical range for the Information Technology Services industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AVGO | JKHY |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 1.36 |
| Quick Ratio (TTM) | 0.98 | 1.36 |
| Debt-to-Equity Ratio (TTM) | 0.97 | 0.08 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.06 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 0.17 |
| Interest Coverage Ratio (TTM) | 5.66 | 44.06 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and JKHY. 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.
JKHY
1.25%
Information Technology Services Industry
- Max
- 16.57%
- Q3
- 1.39%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
JKHY’s Dividend Yield of 1.25% is consistent with its peers in the Information Technology Services industry, providing a dividend return that is standard for its sector.
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.
JKHY
37.87%
Information Technology Services Industry
- Max
- 112.81%
- Q3
- 20.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
JKHY’s Dividend Payout Ratio of 37.87% is in the upper quartile for the Information Technology Services 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.
Dividend at a Glance
| Symbol | AVGO | JKHY |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 1.25% |
| Dividend Payout Ratio (TTM) | 81.25% | 37.87% |
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.
JKHY
30.76
Information Technology Services Industry
- Max
- 49.12
- Q3
- 36.91
- Median
- 24.84
- Q1
- 15.88
- Min
- 1.55
JKHY’s P/E Ratio of 30.76 is within the middle range for the Information Technology Services 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.
JKHY
3.43
Information Technology Services Industry
- Max
- 5.35
- Q3
- 3.79
- Median
- 2.23
- Q1
- 1.19
- Min
- 0.03
JKHY’s Forward PEG Ratio of 3.43 is within the middle range of its peers in the Information Technology Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
JKHY
5.69
Information Technology Services Industry
- Max
- 8.15
- Q3
- 4.17
- Median
- 2.14
- Q1
- 1.00
- Min
- 0.10
JKHY’s P/S Ratio of 5.69 is in the upper echelon for the Information Technology Services 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.
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.
JKHY
6.48
Information Technology Services Industry
- Max
- 11.78
- Q3
- 6.14
- Median
- 3.23
- Q1
- 1.97
- Min
- 0.42
The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.
Valuation at a Glance
| Symbol | AVGO | JKHY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 30.76 |
| Forward PEG Ratio (TTM) | 4.83 | 3.43 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 5.69 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | 6.48 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 43.62 |
| EV-to-EBITDA (TTM) | 44.94 | 17.26 |
| EV-to-Sales (TTM) | 23.70 | 5.75 |