AVGO vs. MSFT: Broadcom vs. Microsoft Stock Comparison

September 14, 2026

How do Broadcom (AVGO) and Microsoft (MSFT) 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 Microsoft (MSFT) share the Information Technology sector but sit in different industry groups — AVGO in Semiconductors & Semiconductor Equipment and MSFT in Software & Services.

Company profile comparison for Broadcom (AVGO) and Microsoft (MSFT)
Profile Item	AVGO	MSFT
Name	Broadcom Inc.	Microsoft Corporation Common Stock
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment	Software & Services
GICS Industry	Semiconductors & Semiconductor Equipment	Software
GICS Sub-Industry	Semiconductors	Systems Software
Market Capitalization	1,728.01 billion USD	3,680.32 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	August 6, 2009	March 13, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AVGO

MSFT

GSPC

Broadcom (AVGO) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
Total Return (1Y)	1.39%	-0.26%
Total Return (3Y, Annualized)	63.47%	14.50%
Total Return (5Y, Annualized)	51.50%	11.80%

Risk Profile

Drawdown History

AVGO

MSFT

GSPC

Broadcom (AVGO) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
Volatility (1Y, Annualized)	46.21%	32.48%
Beta (5Y)	1.46	1.11
Max Drawdown (5Y)	-41.15%	-37.15%
Avg. Volume (3M)	24.02M	35.62M

Risk-Adjusted Performance

Risk-Return Positioning

AVGO and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
Sharpe Ratio (1Y)	-0.06	-0.14
Sortino Ratio (1Y)	-0.09	-0.21

Profitability

ROE (TTM)

Both Broadcom (AVGO) at 44.25% and Microsoft (MSFT) at 34.04% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

AVGO

Semiconductors & Semiconductor Equipment industry group

44.25%

Max: 53.94%
AVGO: 44.25%
Q3: 20.35%
Median: 9.12%
Q1: -3.10%
Min: -21.32%

MSFT

Software & Services industry group

34.04%

Max: 62.27%
MSFT: 34.04%
Q3: 17.93%
Median: 5.25%
Q1: -14.34%
Min: -59.77%

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their ROE against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Net Margin (TTM)

For every dollar of sales, both Broadcom (AVGO) at 42.94% and Microsoft (MSFT) at 40.31% 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: 55.91%
AVGO: 42.94%
Q3: 23.05%
Median: 9.86%
Q1: 0.00%
Min: -34.50%

MSFT

Software & Services industry group

40.31%

Max: 41.43%
MSFT: 40.31%
Q3: 14.96%
Median: 3.57%
Q1: -6.01%
Min: -35.38%

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their net margin against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Operating Margin (TTM)

Both Broadcom (AVGO) at 54.31% and Microsoft (MSFT) at 45.11% 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%

AVGO: 54.31%
Max: 54.31%
Q3: 23.49%
Median: 14.56%
Q1: -0.14%
Min: -31.62%

MSFT

Software & Services industry group

45.11%

Max: 47.12%
MSFT: 45.11%
Q3: 15.43%
Median: 4.85%
Q1: -7.55%
Min: -39.13%

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
ROE (TTM)	44.25%	34.04%
ROA (TTM)	15.37%	14.09%
Net Margin (TTM)	42.94%	40.31%
Operating Margin (TTM)	54.31%	45.11%
Gross Margin (TTM)	75.52%	67.94%

Growth

Revenue Growth

Both Broadcom (AVGO) at 23.87% and Microsoft (MSFT) at 17.79% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Broadcom (AVGO) vs. Microsoft (MSFT): 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 Microsoft (MSFT) at 31.60%, which is closer to a typical peer reading.

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

Growth Metrics

Growth metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
Revenue Growth (YoY)	23.87%	17.79%
Revenue Growth (3Y CAGR)	24.38%	16.12%
EPS Growth (YoY)	287.80%	31.60%
EPS Growth (3Y CAGR)	21.60%	22.86%

Financial Strength

Current Ratio (MRQ)

Both Broadcom (AVGO) at 2.50 and Microsoft (MSFT) at 1.23 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: 10.12
Q3: 5.49
Median: 3.44
AVGO: 2.50
Q1: 2.30
Min: 1.03

MSFT

Software & Services industry group

1.23

Max: 5.67
Q3: 2.95
Median: 1.63
MSFT: 1.23
Q1: 1.01
Min: 0.03

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Both Broadcom (AVGO) at 0.60 and Microsoft (MSFT) at 0.29 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.60

Max: 1.44
Q3: 0.65
AVGO: 0.60
Median: 0.19
Q1: 0.04
Min: 0.00

MSFT

Software & Services industry group

0.29

Max: 2.62
Q3: 1.09
Median: 0.35
MSFT: 0.29
Q1: 0.06
Min: 0.00

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
Current Ratio (MRQ)	2.50	1.23
Debt / Equity (MRQ)	0.60	0.29
Net Debt / EBITDA	0.68	0.27

Dividends

Dividend Yield (TTM)

Broadcom (AVGO) at 0.72% earns its spot in the top quartile of its industry’s yields; Microsoft (MSFT) at 0.74% is past the top of its own peer range — territory where a dividend-safety check matters more than the headline number.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.72%

Max: 0.75%
AVGO: 0.72%
Q3: 0.35%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

0.74%

MSFT: 0.74%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Both pay out more than their industries’ typical bands, and MSFT more so: Broadcom (AVGO) at 32.40% sits above the band, while Microsoft (MSFT) at 19.83% exceeds every peer in its group.

AVGO

Semiconductors & Semiconductor Equipment industry group

32.40%

Max: 45.89%
AVGO: 32.40%
Q3: 18.55%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

19.83%

MSFT: 19.83%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
Dividend Yield (TTM)	0.72%	0.74%
Dividend Payout Ratio (TTM)	32.40%	19.83%

Valuation

P/E Ratio (TTM)

Both Broadcom (AVGO) at 46.05 and Microsoft (MSFT) at 27.63 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

46.05

Max: 142.75
Q3: 86.99
Median: 46.25
AVGO: 46.05
Q1: 33.27
Min: 10.32

MSFT

Software & Services industry group

27.63

Max: 102.14
Q3: 55.34
Median: 28.53
MSFT: 27.63
Q1: 16.18
Min: 0.36

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both Broadcom (AVGO) at 19.39 and Microsoft (MSFT) at 11.09 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

19.39

Max: 33.84
AVGO: 19.39
Q3: 16.39
Median: 7.26
Q1: 3.35
Min: 0.01

MSFT

Software & Services industry group

11.09

Max: 20.02
MSFT: 11.09
Q3: 9.37
Median: 4.56
Q1: 2.27
Min: 0.02

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.32 is valued about in line with its industry on P/B ratio, while Broadcom (AVGO) at 17.34 carries an above-peer premium to book — AVGO is pricier on assets.

AVGO

Semiconductors & Semiconductor Equipment industry group

17.34

Max: 23.32
AVGO: 17.34
Q3: 12.06
Median: 5.43
Q1: 2.94
Min: 0.18

MSFT

Software & Services industry group

8.32

Max: 19.40
Q3: 9.11
MSFT: 8.32
Median: 4.43
Q1: 2.02
Min: -5.19

Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Broadcom (AVGO) and Microsoft (MSFT)
Metric	AVGO	MSFT
P/E Ratio (TTM)	46.05	27.63
P/S Ratio (TTM)	19.39	11.09
P/B Ratio (MRQ)	17.34	8.32
Free Cash Flow Yield (TTM)	1.77%	0.45%