AVGO vs. META: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and META, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AVGO’s market capitalization stands at 1,294.30 billion USD, while META’s is 1,807.70 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.12 for AVGO and 1.27 for META, both stocks show similar sensitivity to overall market movements.
| Symbol | AVGO | META |
|---|---|---|
| Company Name | Broadcom Inc. | Meta Platforms, Inc. |
| Country | US | US |
| Sector | Technology | Communication Services |
| Industry | Semiconductors | Internet Content & Information |
| CEO | Hock E. Tan | Mark Elliot Zuckerberg |
| Price | 275.18 USD | 719.01 USD |
| Market Cap | 1,294.30 billion USD | 1,807.70 billion USD |
| Beta | 1.12 | 1.27 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | May 18, 2012 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and META 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.
META
38.69%
Internet Content & Information Industry
- Max
- 42.68%
- Q3
- 9.10%
- Median
- 3.28%
- Q1
- -14.17%
- Min
- -26.11%
In the upper quartile for the Internet Content & Information industry, META’s Return on Equity of 38.69% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
META
26.21%
Internet Content & Information Industry
- Max
- 31.34%
- Q3
- 14.95%
- Median
- 3.03%
- Q1
- -6.25%
- Min
- -25.52%
In the upper quartile for the Internet Content & Information industry, META’s Return on Invested Capital of 26.21% 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.
META
39.11%
Internet Content & Information Industry
- Max
- 39.11%
- Q3
- 15.31%
- Median
- 4.00%
- Q1
- -6.97%
- Min
- -36.95%
A Net Profit Margin of 39.11% places META in the upper quartile for the Internet Content & Information 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.
META
42.92%
Internet Content & Information Industry
- Max
- 42.92%
- Q3
- 15.51%
- Median
- 2.63%
- Q1
- -6.98%
- Min
- -18.41%
An Operating Profit Margin of 42.92% places META in the upper quartile for the Internet Content & Information 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 | META |
|---|---|---|
| Return on Equity (TTM) | 18.95% | 38.69% |
| Return on Assets (TTM) | 7.85% | 23.78% |
| Return on Invested Capital (TTM) | 10.59% | 26.21% |
| Net Profit Margin (TTM) | 22.64% | 39.11% |
| Operating Profit Margin (TTM) | 35.94% | 42.92% |
| Gross Profit Margin (TTM) | 66.09% | 81.75% |
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.
META
2.66
Internet Content & Information Industry
- Max
- 7.37
- Q3
- 3.97
- Median
- 2.42
- Q1
- 1.67
- Min
- 0.33
META’s Current Ratio of 2.66 aligns with the median group of the Internet Content & Information 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.
META
0.27
Internet Content & Information Industry
- Max
- 0.55
- Q3
- 0.49
- Median
- 0.14
- Q1
- 0.03
- Min
- 0.00
META’s Debt-to-Equity Ratio of 0.27 is typical for the Internet Content & Information industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
META
88.41
Internet Content & Information Industry
- Max
- 26.56
- Q3
- 12.92
- Median
- 3.11
- Q1
- -5.03
- Min
- -16.11
With an Interest Coverage Ratio of 88.41, META demonstrates a superior capacity to service its debt, placing it well above the typical range for the Internet Content & Information industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AVGO | META |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 2.66 |
| Quick Ratio (TTM) | 0.98 | 2.66 |
| Debt-to-Equity Ratio (TTM) | 0.97 | 0.27 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.18 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 0.23 |
| Interest Coverage Ratio (TTM) | 5.66 | 88.41 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and META. 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.
META
0.29%
Internet Content & Information Industry
- Max
- 8.40%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.29%, META offers a more attractive income stream than most of its peers in the Internet Content & Information industry, signaling a strong commitment to shareholder returns.
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.
META
7.70%
Internet Content & Information Industry
- Max
- 112.27%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
META’s Dividend Payout Ratio of 7.70% is in the upper quartile for the Internet Content & Information 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 | META |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 0.29% |
| Dividend Payout Ratio (TTM) | 81.25% | 7.70% |
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.
META
27.27
Internet Content & Information Industry
- Max
- 56.51
- Q3
- 39.89
- Median
- 18.31
- Q1
- 10.09
- Min
- 0.08
META’s P/E Ratio of 27.27 is within the middle range for the Internet Content & Information 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.
META
2.14
Internet Content & Information Industry
- Max
- 4.26
- Q3
- 2.09
- Median
- 0.83
- Q1
- 0.47
- Min
- 0.01
A Forward PEG Ratio of 2.14 places META in the upper quartile for the Internet Content & Information industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
META
10.61
Internet Content & Information Industry
- Max
- 10.83
- Q3
- 6.47
- Median
- 2.35
- Q1
- 0.97
- Min
- 0.66
META’s P/S Ratio of 10.61 is in the upper echelon for the Internet Content & Information 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.
META
9.82
Internet Content & Information Industry
- Max
- 12.17
- Q3
- 6.35
- Median
- 2.86
- Q1
- 0.91
- Min
- 0.02
The P/B Ratio is often not a primary valuation metric for the Internet Content & Information industry.
Valuation at a Glance
| Symbol | AVGO | META |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 27.27 |
| Forward PEG Ratio (TTM) | 4.83 | 2.14 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 10.61 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | 9.82 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 34.56 |
| EV-to-EBITDA (TTM) | 44.94 | 20.01 |
| EV-to-Sales (TTM) | 23.70 | 10.73 |