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AVGO vs. KLAC: Broadcom vs. KLA Stock Comparison

How do Broadcom (AVGO) and KLA (KLAC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Broadcom (AVGO) and KLA (KLAC) both belong to the Semiconductors & Semiconductor Equipment industry, though AVGO is classified under Semiconductors while KLAC falls under Semiconductor Materials & Equipment.

Company profile comparison for Broadcom (AVGO) and KLA (KLAC)
Profile ItemAVGOKLAC
NameBroadcom Inc.KLA Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSemiconductors & Semiconductor EquipmentSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor EquipmentSemiconductors & Semiconductor Equipment
GICS Sub-IndustrySemiconductorsSemiconductor Materials & Equipment
Market Capitalization1,401.97 billion USD180.45 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateAugust 6, 2009October 8, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AVGO
KLAC
GSPC
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Broadcom (AVGO) vs. KLA (KLAC), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Broadcom (AVGO) and KLA (KLAC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Broadcom (AVGO) and KLA (KLAC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
Total Return (1Y)-8.02%26.92%
Total Return (3Y, Annualized)53.49%44.97%
Total Return (5Y, Annualized)44.26%30.55%

Risk Profile

Drawdown History

AVGO
KLAC
GSPC
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Broadcom (AVGO) vs. KLA (KLAC), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Broadcom (AVGO) and KLA (KLAC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
Volatility (1Y, Annualized)48.06%63.92%
Beta (5Y)1.501.51
Max Drawdown (5Y)-41.15%-56.93%
Avg. Volume (3M)23.75M10.66M

Risk-Adjusted Performance

Risk-Return Positioning

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AVGO and KLAC are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
Sharpe Ratio (1Y)-0.260.35
Sortino Ratio (1Y)-0.350.50

Profitability

ROE (TTM)

Both companies show strong equity returns, but KLA (KLAC) at 91.38% is the standout with ROE above its industry range; Broadcom (AVGO) at 44.25% also sits in the top quartile.

AVGO

Semiconductors & Semiconductor Equipment industry group

44.25%

Max
52.82%
AVGO
44.25%
Q3
22.26%
Median
10.58%
Q1
1.29%
Min
-16.89%

KLAC

Semiconductors & Semiconductor Equipment industry group

91.38%

KLAC
91.38%
Max
52.82%
Q3
22.26%
Median
10.58%
Q1
1.29%
Min
-16.89%
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Broadcom (AVGO) at 42.94% and KLA (KLAC) at 36.25% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

AVGO

Semiconductors & Semiconductor Equipment industry group

42.94%

Max
63.80%
AVGO
42.94%
Q3
28.36%
Median
11.44%
Q1
0.90%
Min
-37.77%

KLAC

Semiconductors & Semiconductor Equipment industry group

36.25%

Max
63.80%
KLAC
36.25%
Q3
28.36%
Median
11.44%
Q1
0.90%
Min
-37.77%
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Both Broadcom (AVGO) at 54.31% and KLA (KLAC) at 45.01% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

AVGO

Semiconductors & Semiconductor Equipment industry group

54.31%

Max
58.66%
AVGO
54.31%
Q3
30.23%
Median
15.91%
Q1
7.54%
Min
-25.74%

KLAC

Semiconductors & Semiconductor Equipment industry group

45.01%

Max
58.66%
KLAC
45.01%
Q3
30.23%
Median
15.91%
Q1
7.54%
Min
-25.74%
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
ROE (TTM)44.25%91.38%
ROA (TTM)15.37%22.27%
Net Margin (TTM)42.94%36.25%
Operating Margin (TTM)54.31%45.01%
Gross Margin (TTM)75.52%61.47%

Growth

Revenue Growth

Both Broadcom (AVGO) at 23.87% and KLA (KLAC) at 11.71% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their Revenue Growth across different time periods.

EPS Growth

Broadcom (AVGO) at 287.80% clears its industry range for EPS growth, a much stronger earnings trajectory than KLA (KLAC) at 20.51%, which is closer to a typical peer reading.

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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
Revenue Growth (YoY)23.87%11.71%
Revenue Growth (3Y CAGR)24.38%8.96%
EPS Growth (YoY)287.80%20.51%
EPS Growth (3Y CAGR)21.60%14.87%

Financial Strength

Current Ratio (MRQ)

Both Broadcom (AVGO) at 2.50 and KLA (KLAC) at 2.76 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

AVGO

Semiconductors & Semiconductor Equipment industry group

2.50

Max
10.33
Q3
5.62
Median
3.33
AVGO
2.50
Q1
2.35
Min
1.03

KLAC

Semiconductors & Semiconductor Equipment industry group

2.76

Max
10.33
Q3
5.62
Median
3.33
KLAC
2.76
Q1
2.35
Min
1.03
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Broadcom (AVGO) at 0.60 carries an industry-typical debt-to-equity mix, while KLA (KLAC) at 0.92 uses more debt funding than most peers.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.60

Max
1.46
Q3
0.65
AVGO
0.60
Median
0.27
Q1
0.04
Min
0.00

KLAC

Semiconductors & Semiconductor Equipment industry group

0.92

Max
1.46
KLAC
0.92
Q3
0.65
Median
0.27
Q1
0.04
Min
0.00
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
Current Ratio (MRQ)2.502.76
Debt / Equity (MRQ)0.600.92
Net Debt / EBITDA0.680.19

Dividends

Dividend Yield (TTM)

Broadcom (AVGO) at 0.89% delivers top-quartile income for its industry, while KLA (KLAC) at 0.65% pays a more typical yield — both are credible income propositions, AVGO the richer one.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.89%

Max
1.37%
AVGO
0.89%
Q3
0.65%
Median
0.00%
Q1
0.00%
Min
0.00%

KLAC

Semiconductors & Semiconductor Equipment industry group

0.65%

Max
1.37%
Q3
0.65%
KLAC
0.65%
Median
0.00%
Q1
0.00%
Min
0.00%
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

KLA (KLAC) at 21.03% pays out a band-typical share of earnings, while Broadcom (AVGO) at 32.44% distributes more than its industry norm — less retained, thinner cover.

AVGO

Semiconductors & Semiconductor Equipment industry group

32.44%

Max
49.64%
AVGO
32.44%
Q3
21.71%
Median
0.00%
Q1
0.00%
Min
0.00%

KLAC

Semiconductors & Semiconductor Equipment industry group

21.03%

Max
49.64%
Q3
21.71%
KLAC
21.03%
Median
0.00%
Q1
0.00%
Min
0.00%
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
Dividend Yield (TTM)0.89%0.65%
Dividend Payout Ratio (TTM)32.44%21.03%

Valuation

P/E Ratio (TTM)

Both Broadcom (AVGO) at 37.51 and KLA (KLAC) at 34.71 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AVGO

Semiconductors & Semiconductor Equipment industry group

37.51

Max
110.34
Q3
66.81
AVGO
37.51
Median
37.02
Q1
23.96
Min
8.12

KLAC

Semiconductors & Semiconductor Equipment industry group

34.71

Max
110.34
Q3
66.81
Median
37.02
KLAC
34.71
Q1
23.96
Min
8.12
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

Both Broadcom (AVGO) at 15.73 and KLA (KLAC) at 12.44 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

AVGO

Semiconductors & Semiconductor Equipment industry group

15.73

Max
21.42
AVGO
15.73
Q3
12.27
Median
5.76
Q1
2.73
Min
0.00

KLAC

Semiconductors & Semiconductor Equipment industry group

12.44

Max
21.42
KLAC
12.44
Q3
12.27
Median
5.76
Q1
2.73
Min
0.00
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Broadcom (AVGO) at 14.06 sits in the upper P/B ratio quartile, and KLA (KLAC) at 27.67 prices even higher, above its industry range.

AVGO

Semiconductors & Semiconductor Equipment industry group

14.06

AVGO
14.06
Max
14.06
Q3
7.44
Median
4.29
Q1
2.30
Min
0.20

KLAC

Semiconductors & Semiconductor Equipment industry group

27.67

KLAC
27.67
Max
14.06
Q3
7.44
Median
4.29
Q1
2.30
Min
0.20
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Broadcom (AVGO) vs. KLA (KLAC): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Broadcom (AVGO) and KLA (KLAC)
MetricAVGOKLAC
P/E Ratio (TTM)37.5134.71
P/S Ratio (TTM)15.7312.44
P/B Ratio (MRQ)14.0627.67
Free Cash Flow Yield (TTM)2.18%1.56%