Broadcom (AVGO) vs. Microsoft (MSFT)
This page compares Broadcom (AVGO) with Microsoft (MSFT) using historical performance, profitability, financial strength, growth, dividend, and valuation metrics.
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.
| Symbol | AVGO | MSFT |
|---|---|---|
| Company Name | Broadcom Inc. | Microsoft Corporation |
| 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 | 1,962.85 billion USD | 3,113.18 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | August 6, 2009 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
Historical Performance
Historical Performance at a Glance
| Symbol | AVGO | MSFT |
|---|---|---|
| 5-Day Price Return | -2.50% | -0.67% |
| 13-Week Price Return | 24.13% | 5.18% |
| 26-Week Price Return | 21.94% | -16.73% |
| 52-Week Price Return | 80.46% | -7.40% |
| Month-to-Date Return | -0.69% | 2.77% |
| Year-to-Date Return | 19.78% | -13.34% |
| 10-Day Avg. Volume | 18.58M | 34.00M |
| 3-Month Avg. Volume | 24.44M | 36.41M |
| 3-Month Volatility | 41.22% | 27.08% |
| Beta | 1.42 | 1.09 |
Profitability
Return on Equity (TTM)
Both Broadcom (AVGO) at 32.85% and Microsoft (MSFT) at 33.13% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.
AVGO
Semiconductors & Semiconductor Equipment industry group
32.85%
- Max
- 44.68%
- Q3
- 17.87%
- Median
- 7.82%
- Q1
- -3.34%
- Min
- -32.99%
MSFT
Software & Services industry group
33.13%
- Max
- 62.31%
- Q3
- 20.29%
- Median
- 7.31%
- Q1
- -8.50%
- Min
- -50.67%
Net Profit Margin (TTM)
Both Broadcom (AVGO) at 36.57% and Microsoft (MSFT) at 39.34% rank in the top quartile for Net Profit Margin (TTM) among industry peers, indicating both companies convert revenue into net income more strongly than typical competitors.
AVGO
Semiconductors & Semiconductor Equipment industry group
36.57%
- Max
- 47.00%
- Q3
- 21.67%
- Median
- 8.14%
- Q1
- -5.59%
- Min
- -44.72%
MSFT
Software & Services industry group
39.34%
- Max
- 44.20%
- Q3
- 16.48%
- Median
- 8.18%
- Q1
- -3.67%
- Min
- -28.43%
Operating Profit Margin (TTM)
Both Broadcom (AVGO) at 40.77% and Microsoft (MSFT) at 46.75% rank in the top quartile for Operating Profit Margin (TTM) among industry peers, indicating both companies convert revenue into operating income more strongly than typical competitors.
AVGO
Semiconductors & Semiconductor Equipment industry group
40.77%
- Max
- 64.02%
- Q3
- 24.88%
- Median
- 9.09%
- Q1
- -2.77%
- Min
- -35.68%
MSFT
Software & Services industry group
46.75%
- Max
- 46.75%
- Q3
- 17.04%
- Median
- 6.53%
- Q1
- -4.60%
- Min
- -34.31%
Profitability at a Glance
| Symbol | AVGO | MSFT |
|---|---|---|
| Return on Equity (TTM) | 32.85% | 33.13% |
| Return on Assets (TTM) | 14.88% | 19.15% |
| Net Profit Margin (TTM) | 36.57% | 39.34% |
| Operating Profit Margin (TTM) | 40.77% | 46.75% |
| Gross Profit Margin (TTM) | 67.93% | 68.31% |
Financial Strength
Current Ratio (MRQ)
Microsoft (MSFT) at 1.28 keeps Current Ratio (MRQ) within its industry mid-range, while Broadcom (AVGO) at 1.90 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for AVGO.
AVGO
Semiconductors & Semiconductor Equipment industry group
1.90
- Max
- 9.20
- Q3
- 5.14
- Median
- 3.07
- Q1
- 2.31
- Min
- 1.02
MSFT
Software & Services industry group
1.28
- Max
- 4.52
- Q3
- 2.50
- Median
- 1.64
- Q1
- 1.13
- Min
- 0.31
Debt-to-Equity Ratio (MRQ)
Microsoft (MSFT) at 0.25 carries Debt-to-Equity Ratio (MRQ) around its industry mid-range, while Broadcom (AVGO) at 0.83 sits in the higher-leverage quartile.
AVGO
Semiconductors & Semiconductor Equipment industry group
0.83
- Max
- 1.18
- Q3
- 0.56
- Median
- 0.19
- Q1
- 0.00
- Min
- 0.00
MSFT
Software & Services industry group
0.25
- Max
- 2.69
- Q3
- 1.27
- Median
- 0.38
- Q1
- 0.00
- Min
- 0.00
Interest Coverage Ratio (TTM)
Microsoft (MSFT) posts Interest Coverage Ratio (TTM) of 891.80, above its industry benchmark range, while Broadcom (AVGO) at 8.89 sits closer to the industry mid-range.
AVGO
Semiconductors & Semiconductor Equipment industry group
8.89
- Max
- 95.50
- Q3
- 44.75
- Median
- 14.35
- Q1
- 0.46
- Min
- -45.50
MSFT
Software & Services industry group
891.80
- Max
- 45.58
- Q3
- 11.44
- Median
- -0.40
- Q1
- -13.69
- Min
- -51.04
Financial Strength at a Glance
| Symbol | AVGO | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 1.90 | 1.28 |
| Quick Ratio (MRQ) | 1.69 | 1.27 |
| Debt-to-Equity Ratio (MRQ) | 0.83 | 0.25 |
| Interest Coverage Ratio (TTM) | 8.89 | 891.80 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | AVGO | MSFT |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 29.47% | 18.30% |
| Revenue Growth (TTM vs Prior YoY) | 25.22% | 17.87% |
| 3-Year Revenue CAGR | 24.38% | 12.42% |
| 5-Year Revenue CAGR | 21.74% | 14.52% |
EPS Growth
EPS Growth at a Glance
| Symbol | AVGO | MSFT |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 32.13% | 23.32% |
| EPS Growth (TTM vs Prior YoY) | 147.22% | 29.75% |
| 3-Year EPS CAGR | 20.59% | 12.24% |
| 5-Year EPS CAGR | 46.63% | 18.80% |
Dividend
Dividend Yield (TTM)
Broadcom (AVGO) at 0.59% reports Dividend Yield (TTM) in the top quartile of industry peers, ahead of Microsoft (MSFT) at 0.83%, which sits around the industry mid-range.
AVGO
Semiconductors & Semiconductor Equipment industry group
0.59%
- Max
- 1.06%
- Q3
- 0.43%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT
Software & Services industry group
0.83%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Broadcom (AVGO) at 45.87% and Microsoft (MSFT) at 20.65% post Dividend Payout Ratio (TTM) outside their industries’ typical mid-range — either leaning toward more retention or more distribution than the industry median.
AVGO
Semiconductors & Semiconductor Equipment industry group
45.87%
- Max
- 45.87%
- Q3
- 21.77%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT
Software & Services industry group
20.65%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend at a Glance
| Symbol | AVGO | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.59% | 0.83% |
| Dividend Payout Ratio (TTM) | 45.87% | 20.65% |
Valuation
Price-to-Earnings Ratio (TTM)
Both Broadcom (AVGO) at 78.11 and Microsoft (MSFT) at 24.92 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.
AVGO
Semiconductors & Semiconductor Equipment industry group
78.11
- Max
- 210.81
- Q3
- 119.56
- Median
- 61.47
- Q1
- 39.21
- Min
- 15.75
MSFT
Software & Services industry group
24.92
- Max
- 102.57
- Q3
- 62.64
- Median
- 31.77
- Q1
- 14.20
- Min
- 0.35
Price-to-Sales Ratio (TTM)
Both Broadcom (AVGO) at 28.57 and Microsoft (MSFT) at 9.80 trade in the higher-multiple quartile for Price-to-Sales Ratio (TTM) among industry peers, indicating higher trailing revenue multiples than typical peers.
AVGO
Semiconductors & Semiconductor Equipment industry group
28.57
- Max
- 33.40
- Q3
- 18.97
- Median
- 8.92
- Q1
- 4.85
- Min
- 0.15
MSFT
Software & Services industry group
9.80
- Max
- 17.61
- Q3
- 8.53
- Median
- 4.13
- Q1
- 2.23
- Min
- 0.12
Price-to-Book Ratio (MRQ)
Microsoft (MSFT) at 6.63 hovers around the typical industry Price-to-Book Ratio (MRQ), while Broadcom (AVGO) at 19.66 sits above its industry benchmark range — an elevated book-value multiple for AVGO relative to peers.
AVGO
Semiconductors & Semiconductor Equipment industry group
19.66
- Max
- 15.23
- Q3
- 7.79
- Median
- 4.52
- Q1
- 2.23
- Min
- 0.33
MSFT
Software & Services industry group
6.63
- Max
- 20.48
- Q3
- 9.90
- Median
- 4.69
- Q1
- 2.39
- Min
- 0.32
Valuation at a Glance
| Symbol | AVGO | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 78.11 | 24.92 |
| Price-to-Sales Ratio (TTM) | 28.57 | 9.80 |
| Price-to-Book Ratio (MRQ) | 19.66 | 6.63 |
| Price-to-Free Cash Flow Ratio (TTM) | 67.47 | 42.79 |