AVGO vs. MS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and MS, 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 MS’s 231.25 billion USD, indicating a significant difference in their market valuations.
With betas of 1.12 for AVGO and 1.29 for MS, both stocks show similar sensitivity to overall market movements.
| Symbol | AVGO | MS |
|---|---|---|
| Company Name | Broadcom Inc. | Morgan Stanley |
| Country | US | US |
| Sector | Technology | Financial Services |
| Industry | Semiconductors | Financial - Capital Markets |
| CEO | Hock E. Tan | Edward N. Pick |
| Price | 275.18 USD | 144.14 USD |
| Market Cap | 1,294.30 billion USD | 231.25 billion USD |
| Beta | 1.12 | 1.29 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 6, 2009 | February 23, 1993 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and MS 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.
MS
14.01%
Financial - Capital Markets Industry
- Max
- 42.02%
- Q3
- 20.69%
- Median
- 13.73%
- Q1
- 3.33%
- Min
- -21.32%
MS’s Return on Equity of 14.01% is on par with the norm for the Financial - Capital Markets 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.
MS
2.64%
Financial - Capital Markets Industry
- Max
- 30.24%
- Q3
- 13.34%
- Median
- 6.20%
- Q1
- -1.71%
- Min
- -16.91%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Capital Markets industry.
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.
MS
13.52%
Financial - Capital Markets Industry
- Max
- 28.67%
- Q3
- 13.52%
- Median
- 10.47%
- Q1
- 0.24%
- Min
- -9.55%
MS’s Net Profit Margin of 13.52% is aligned with the median group of its peers in the Financial - Capital Markets industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
MS
17.73%
Financial - Capital Markets Industry
- Max
- 56.86%
- Q3
- 25.29%
- Median
- 15.90%
- Q1
- 0.51%
- Min
- -19.18%
MS’s Operating Profit Margin of 17.73% is around the midpoint for the Financial - Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AVGO | MS |
|---|---|---|
| Return on Equity (TTM) | 18.95% | 14.01% |
| Return on Assets (TTM) | 7.85% | 1.18% |
| Return on Invested Capital (TTM) | 10.59% | 2.64% |
| Net Profit Margin (TTM) | 22.64% | 13.52% |
| Operating Profit Margin (TTM) | 35.94% | 17.73% |
| Gross Profit Margin (TTM) | 66.09% | 56.30% |
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.
MS
0.66
Financial - Capital Markets Industry
- Max
- 4.60
- Q3
- 3.24
- Median
- 1.32
- Q1
- 0.96
- Min
- 0.05
For the Financial - Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
MS
3.45
Financial - Capital Markets Industry
- Max
- 3.63
- Q3
- 1.68
- Median
- 0.37
- Q1
- 0.09
- Min
- 0.00
MS’s leverage is in the upper quartile of the Financial - Capital Markets industry, with a Debt-to-Equity Ratio of 3.45. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
MS
0.41
Financial - Capital Markets Industry
- Max
- 12.71
- Q3
- 7.94
- Median
- 1.92
- Q1
- 0.24
- Min
- -7.71
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Capital Markets industry.
Financial Strength at a Glance
| Symbol | AVGO | MS |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 0.66 |
| Quick Ratio (TTM) | 0.98 | 0.66 |
| Debt-to-Equity Ratio (TTM) | 0.97 | 3.45 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.30 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 11.97 |
| Interest Coverage Ratio (TTM) | 5.66 | 0.41 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and MS. 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.
MS
2.57%
Financial - Capital Markets Industry
- Max
- 5.86%
- Q3
- 1.74%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.57%, MS offers a more attractive income stream than most of its peers in the Financial - Capital Markets 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.
MS
42.94%
Financial - Capital Markets Industry
- Max
- 128.06%
- Q3
- 43.11%
- Median
- 12.56%
- Q1
- 0.00%
- Min
- 0.00%
MS’s Dividend Payout Ratio of 42.94% is within the typical range for the Financial - Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVGO | MS |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 2.57% |
| Dividend Payout Ratio (TTM) | 81.25% | 42.94% |
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.
MS
15.97
Financial - Capital Markets Industry
- Max
- 42.65
- Q3
- 29.09
- Median
- 20.52
- Q1
- 14.58
- Min
- 8.28
MS’s P/E Ratio of 15.97 is within the middle range for the Financial - Capital Markets 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.
MS
2.27
Financial - Capital Markets Industry
- Max
- 4.05
- Q3
- 2.46
- Median
- 1.52
- Q1
- 0.78
- Min
- 0.02
MS’s Forward PEG Ratio of 2.27 is within the middle range of its peers in the Financial - Capital Markets 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.
MS
2.19
Financial - Capital Markets Industry
- Max
- 14.34
- Q3
- 7.63
- Median
- 2.98
- Q1
- 1.50
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial - Capital Markets industry.
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.
MS
2.18
Financial - Capital Markets Industry
- Max
- 9.60
- Q3
- 6.00
- Median
- 2.91
- Q1
- 1.84
- Min
- 0.53
MS’s P/B Ratio of 2.18 is within the conventional range for the Financial - Capital Markets 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.
Valuation at a Glance
| Symbol | AVGO | MS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 15.97 |
| Forward PEG Ratio (TTM) | 4.83 | 2.27 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 2.19 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | 2.18 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | -110.12 |
| EV-to-EBITDA (TTM) | 44.94 | 21.68 |
| EV-to-Sales (TTM) | 23.70 | 4.88 |