Seek Returns logo

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

Updated on

Here’s a clear look at AVGO and JNJ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAVGOJNJ
Company NameBroadcom Inc.Johnson & Johnson
CountryUnited StatesUnited States
GICS SectorInformation TechnologyHealth Care
GICS IndustrySemiconductors & Semiconductor EquipmentPharmaceuticals
Market Capitalization1,412.22 billion USD425.77 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 6, 2009January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolAVGOJNJ
5-Day Price Return3.68%-1.20%
13-Week Price Return27.41%15.36%
26-Week Price Return37.31%8.93%
52-Week Price Return88.10%7.40%
Month-to-Date Return2.23%7.31%
Year-to-Date Return29.51%22.24%
10-Day Avg. Volume18.29M8.50M
3-Month Avg. Volume20.25M8.25M
3-Month Volatility30.29%18.04%
Beta1.190.38

Profitability

Return on Equity (TTM)

AVGO

18.95%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

AVGO’s Return on Equity of 18.95% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

JNJ

30.39%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

In the upper quartile for the Pharmaceuticals industry, JNJ’s Return on Equity of 30.39% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AVGO vs. JNJ: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Net Profit Margin (TTM)

AVGO

22.64%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

A Net Profit Margin of 22.64% 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.

JNJ

25.00%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

A Net Profit Margin of 25.00% places JNJ in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

AVGO vs. JNJ: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Operating Profit Margin (TTM)

AVGO

35.94%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

An Operating Profit Margin of 35.94% 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.

JNJ

30.18%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

An Operating Profit Margin of 30.18% places JNJ in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AVGO vs. JNJ: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Profitability at a Glance

SymbolAVGOJNJ
Return on Equity (TTM)18.95%30.39%
Return on Assets (TTM)7.79%12.16%
Net Profit Margin (TTM)22.64%25.00%
Operating Profit Margin (TTM)35.94%30.18%
Gross Profit Margin (TTM)66.35%67.98%

Financial Strength

Current Ratio (MRQ)

AVGO

1.08

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

AVGO’s Current Ratio of 1.08 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.

JNJ

1.01

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

JNJ’s Current Ratio of 1.01 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AVGO vs. JNJ: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AVGO

0.97

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

AVGO’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

JNJ

0.65

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

JNJ’s Debt-to-Equity Ratio of 0.65 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AVGO vs. JNJ: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Interest Coverage Ratio (TTM)

AVGO

3.83

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Interest Coverage Ratio of 3.83 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

JNJ

34.01

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

JNJ’s Interest Coverage Ratio of 34.01 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

AVGO vs. JNJ: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Financial Strength at a Glance

SymbolAVGOJNJ
Current Ratio (MRQ)1.081.01
Quick Ratio (MRQ)0.930.68
Debt-to-Equity Ratio (MRQ)0.970.65
Interest Coverage Ratio (TTM)3.8334.01

Growth

Revenue Growth

AVGO vs. JNJ: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AVGO vs. JNJ: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AVGO

0.77%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

AVGO’s Dividend Yield of 0.77% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

JNJ

2.81%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

JNJ’s Dividend Yield of 2.81% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

AVGO vs. JNJ: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Dividend Payout Ratio (TTM)

AVGO

54.37%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

AVGO’s Dividend Payout Ratio of 54.37% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

JNJ

53.34%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

JNJ’s Dividend Payout Ratio of 53.34% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AVGO vs. JNJ: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Dividend at a Glance

SymbolAVGOJNJ
Dividend Yield (TTM)0.77%2.81%
Dividend Payout Ratio (TTM)54.37%53.34%

Valuation

Price-to-Earnings Ratio (TTM)

AVGO

105.02

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

A P/E Ratio of 105.02 places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

JNJ

18.99

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

JNJ’s P/E Ratio of 18.99 is within the middle range for the Pharmaceuticals 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. JNJ: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

AVGO

23.78

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

With a P/S Ratio of 23.78, AVGO trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

JNJ

4.75

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

JNJ’s P/S Ratio of 4.75 is in the upper echelon for the Pharmaceuticals 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.

AVGO vs. JNJ: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

AVGO

13.56

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

AVGO’s P/B Ratio of 13.56 is in the upper tier for the Semiconductors & Semiconductor Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

JNJ

4.68

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

JNJ’s P/B Ratio of 4.68 is within the conventional range for the Pharmaceuticals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AVGO vs. JNJ: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolAVGOJNJ
Price-to-Earnings Ratio (TTM)105.0218.99
Price-to-Sales Ratio (TTM)23.784.75
Price-to-Book Ratio (MRQ)13.564.68
Price-to-Free Cash Flow Ratio (TTM)59.7623.20