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

Company Overview

AVGO (1,080.18 billion USD) and JPM (725.45 billion USD) sit neck-and-neck in market cap terms.

AVGO at 1.06 and JPM at 1.07 move in sync when it comes to market volatility.

Performance Comparison

This chart compares the performance of AVGO and JPM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of AVGO and JPM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

• AVGO stands out with a P/E of 107.08, far exceeding conventional benchmarks. This elevated figure means its stock price is disproportionately large compared to its earnings over the past twelve months, often reflecting strong investor optimism about its future. Meanwhile, JPM at 12.33 aligns with more typical earnings multiples.
• AVGO carries a negative Forward PEG of -1.07, hinting at analyst expectations of losses or shrinking earnings in the coming period—a potential warning for its future performance. On the flip side, JPM at 1.79 sidesteps this concern with a more favorable outlook.
• JPM has a negative Price-to-Free Cash Flow of -122.34, indicating it’s spent more cash than it’s brought in over the past year—a cash flow shortfall that raises questions about its operational sustainability. Meanwhile, AVGO at 52.10 maintains a positive cash position.

Dividend Comparison

Both AVGO at 0.97% and JPM at 1.93% pay dividends, blending income with growth in their strategies. Yet JPM’s 1.93% yield, 99% above AVGO’s 0.97%, suggests a focus on generous payouts—possibly from stronger profits—while AVGO leans toward reinvestment, perhaps due to tighter margins.

Financial Strength Metrics Comparison

This section dives into the financial resilience of AVGO and JPM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

• JPM’s current ratio of 0.58 dips below 1, leaving short-term liabilities larger than current assets—a scenario that could hinge on cash flow support. On the other hand, AVGO at 1.00 has enough assets to handle its obligations.
• At 0.58, JPM’s quick ratio falls below 0.8, where liquid assets, minus inventory, can’t keep up with short-term bills—possibly riding on cash flow. By contrast, AVGO hits 0.91, covering its bases comfortably.
• JPM’s 1.34 sits under 1.5, where earnings hug interest costs too closely—a squeeze if income dips. Meanwhile, AVGO at 6.03 has room to breathe.