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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.

SymbolAVGOMSFT
Company NameBroadcom Inc.Microsoft Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSemiconductors & Semiconductor EquipmentSoftware & Services
GICS IndustrySemiconductors & Semiconductor EquipmentSoftware
GICS Sub-IndustrySemiconductorsSystems Software
Market Capitalization1,962.85 billion USD3,113.18 billion USD
CurrencyUSDUSD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 6, 2009March 13, 1986
Security TypeCommon StockCommon Stock

Historical Performance

AVGO
MSFT
Loading price history…
Broadcom (AVGO) vs. Microsoft (MSFT): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Historical Performance at a Glance

SymbolAVGOMSFT
5-Day Price Return-2.50%-0.67%
13-Week Price Return24.13%5.18%
26-Week Price Return21.94%-16.73%
52-Week Price Return80.46%-7.40%
Month-to-Date Return-0.69%2.77%
Year-to-Date Return19.78%-13.34%
10-Day Avg. Volume18.58M34.00M
3-Month Avg. Volume24.44M36.41M
3-Month Volatility41.22%27.08%
Beta1.421.09

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

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

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

Profitability at a Glance

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

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
Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

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

Financial Strength at a Glance

SymbolAVGOMSFT
Current Ratio (MRQ)1.901.28
Quick Ratio (MRQ)1.691.27
Debt-to-Equity Ratio (MRQ)0.830.25
Interest Coverage Ratio (TTM)8.89891.80

Growth

Revenue Growth

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

Revenue Growth at a Glance

SymbolAVGOMSFT
Revenue Growth (MRQ vs Prior YoY)29.47%18.30%
Revenue Growth (TTM vs Prior YoY)25.22%17.87%
3-Year Revenue CAGR24.38%12.42%
5-Year Revenue CAGR21.74%14.52%

EPS Growth

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

EPS Growth at a Glance

SymbolAVGOMSFT
EPS Growth (MRQ vs Prior YoY)32.13%23.32%
EPS Growth (TTM vs Prior YoY)147.22%29.75%
3-Year EPS CAGR20.59%12.24%
5-Year EPS CAGR46.63%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%
Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

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

Dividend at a Glance

SymbolAVGOMSFT
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
Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

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
Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

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
Broadcom (AVGO) vs. Microsoft (MSFT): A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software & Services industry group benchmarks.

Valuation at a Glance

SymbolAVGOMSFT
Price-to-Earnings Ratio (TTM)78.1124.92
Price-to-Sales Ratio (TTM)28.579.80
Price-to-Book Ratio (MRQ)19.666.63
Price-to-Free Cash Flow Ratio (TTM)67.4742.79