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AVGO vs. MSFT: Broadcom vs. Microsoft Stock Comparison

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 ItemAVGOMSFT
NameBroadcom Inc.Microsoft Corp.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSemiconductors & Semiconductor EquipmentSoftware & Services
GICS IndustrySemiconductors & Semiconductor EquipmentSoftware
GICS Sub-IndustrySemiconductorsSystems Software
Market Capitalization1,778.86 billion USD2,872.87 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateAugust 6, 2009March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AVGO
MSFT
GSPC
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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)
MetricAVGOMSFT
Total Return (1Y)36.87%-21.85%
Total Return (3Y, Annualized)65.96%5.07%
Total Return (5Y, Annualized)54.06%7.73%

Risk Profile

Drawdown History

AVGO
MSFT
GSPC
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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)
MetricAVGOMSFT
Volatility (1Y, Annualized)46.66%27.19%
Beta (5Y)1.451.13
Max Drawdown (5Y)-41.15%-37.15%
Avg. Volume (3M)26.46M39.75M

Risk-Adjusted Performance

Risk-Return Positioning

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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)
MetricAVGOMSFT
Sharpe Ratio (1Y)0.71-0.95
Sortino Ratio (1Y)1.05-1.26

Profitability

ROE (TTM)

Both Broadcom (AVGO) at 37.28% and Microsoft (MSFT) at 34.01% 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

37.28%

Max
39.69%
AVGO
37.28%
Q3
17.02%
Median
6.75%
Q1
-4.42%
Min
-35.15%

MSFT

Software & Services industry group

34.01%

Max
53.38%
MSFT
34.01%
Q3
16.58%
Median
5.38%
Q1
-13.49%
Min
-58.43%
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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 38.85% and Microsoft (MSFT) at 39.34% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

AVGO

Semiconductors & Semiconductor Equipment industry group

38.85%

Max
57.72%
AVGO
38.85%
Q3
21.04%
Median
7.16%
Q1
-3.57%
Min
-32.92%

MSFT

Software & Services industry group

39.34%

Max
44.20%
MSFT
39.34%
Q3
14.93%
Median
3.51%
Q1
-5.83%
Min
-34.99%
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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 48.99% and Microsoft (MSFT) at 46.33% 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

48.99%

Max
61.85%
AVGO
48.99%
Q3
21.10%
Median
10.10%
Q1
-7.89%
Min
-46.64%

MSFT

Software & Services industry group

46.33%

Max
60.45%
MSFT
46.33%
Q3
16.51%
Median
4.74%
Q1
-12.92%
Min
-53.94%
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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)
MetricAVGOMSFT
ROE (TTM)37.28%34.01%
ROA (TTM)12.12%14.81%
Net Margin (TTM)38.85%39.34%
Operating Margin (TTM)48.99%46.33%
Gross Margin (TTM)76.28%68.31%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for Broadcom (AVGO) and Microsoft (MSFT)
MetricAVGOMSFT
Revenue Growth (YoY)23.87%14.93%
Revenue Growth (3Y CAGR)24.38%12.42%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for Broadcom (AVGO) and Microsoft (MSFT)
MetricAVGOMSFT
EPS Growth (YoY)287.80%15.59%
EPS Growth (3Y CAGR)21.60%12.23%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.28 keeps current ratio within its industry’s typical mid-range, while Broadcom (AVGO) at 2.24 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for AVGO.

AVGO

Semiconductors & Semiconductor Equipment industry group

2.24

Max
11.30
Q3
6.01
Median
3.31
Q1
2.40
AVGO
2.24
Min
0.51

MSFT

Software & Services industry group

1.28

Max
5.55
Q3
2.88
Median
1.71
MSFT
1.28
Q1
1.06
Min
0.03
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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)

Microsoft (MSFT) at 0.30 carries an industry-typical debt-to-equity mix, while Broadcom (AVGO) at 0.74 uses more debt funding than most peers.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.74

Max
1.44
AVGO
0.74
Q3
0.63
Median
0.23
Q1
0.05
Min
0.00

MSFT

Software & Services industry group

0.30

Max
2.31
Q3
1.06
Median
0.31
MSFT
0.30
Q1
0.06
Min
0.00
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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)
MetricAVGOMSFT
Current Ratio (MRQ)2.241.28
Debt / Equity (MRQ)0.740.30
Net Debt / EBITDA1.080.26

Dividends

Dividend Yield (TTM)

Both Broadcom (AVGO) at 0.70% and Microsoft (MSFT) at 0.91% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.70%

AVGO
0.70%
Max
0.53%
Q3
0.26%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.91%

MSFT
0.91%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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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 41.26% sits above the band, while Microsoft (MSFT) at 20.73% exceeds every peer in its group.

AVGO

Semiconductors & Semiconductor Equipment industry group

41.26%

Max
47.82%
AVGO
41.26%
Q3
20.31%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

20.73%

MSFT
20.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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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)
MetricAVGOMSFT
Dividend Yield (TTM)0.70%0.91%
Dividend Payout Ratio (TTM)41.26%20.73%

Valuation

P/E Ratio (TTM)

Both Broadcom (AVGO) at 62.11 and Microsoft (MSFT) at 23.03 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

62.11

Max
243.53
Q3
136.40
Median
67.69
AVGO
62.11
Q1
43.47
Min
10.77

MSFT

Software & Services industry group

23.03

Max
117.78
Q3
62.65
Median
31.29
MSFT
23.03
Q1
16.64
Min
0.43
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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)

Microsoft (MSFT) at 9.03 is priced about in line with its industry on P/S ratio, while Broadcom (AVGO) at 23.57 sits in the pricier quartile — AVGO costs more per dollar of sales.

AVGO

Semiconductors & Semiconductor Equipment industry group

23.57

Max
37.09
AVGO
23.57
Q3
19.83
Median
10.07
Q1
4.18
Min
0.01

MSFT

Software & Services industry group

9.03

Max
18.75
Q3
9.31
MSFT
9.03
Median
4.30
Q1
2.22
Min
0.02
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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 6.93 is valued about in line with its industry on P/B ratio, while Broadcom (AVGO) at 20.29 carries an above-peer premium to book — AVGO is pricier on assets.

AVGO

Semiconductors & Semiconductor Equipment industry group

20.29

Max
25.39
AVGO
20.29
Q3
13.30
Median
7.38
Q1
3.64
Min
0.19

MSFT

Software & Services industry group

6.93

Max
18.69
Q3
8.74
MSFT
6.93
Median
3.99
Q1
2.05
Min
-5.53
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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)
MetricAVGOMSFT
P/E Ratio (TTM)62.1123.03
P/S Ratio (TTM)23.579.03
P/B Ratio (MRQ)20.296.93
Free Cash Flow Yield (TTM)1.53%1.29%