AVGO vs. NVO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and NVO, 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 NVO’s 306.26 billion USD, indicating a significant difference in their market valuations.
AVGO’s beta of 1.12 points to significantly higher volatility compared to NVO (beta: 0.22), suggesting AVGO has greater potential for both gains and losses relative to market movements.
NVO is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AVGO, on the other hand, is a domestic entity.
| Symbol | AVGO | NVO |
|---|---|---|
| Company Name | Broadcom Inc. | Novo Nordisk A/S |
| Country | US | DK |
| Sector | Technology | Healthcare |
| Industry | Semiconductors | Drug Manufacturers - General |
| CEO | Hock E. Tan | Lars Fruergaard Jorgensen |
| Price | 275.18 USD | 69.17 USD |
| Market Cap | 1,294.30 billion USD | 306.26 billion USD |
| Beta | 1.12 | 0.22 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 6, 2009 | April 30, 1981 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AVGO and NVO 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.
NVO
81.24%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
In the upper quartile for the Drug Manufacturers - General industry, NVO’s Return on Equity of 81.24% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
NVO
38.75%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
NVO’s Return on Invested Capital of 38.75% is exceptionally high, placing it well beyond the typical range for the Drug Manufacturers - General industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
NVO
34.51%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
A Net Profit Margin of 34.51% places NVO in the upper quartile for the Drug Manufacturers - General industry, signifying strong profitability and more effective cost management than most of its peers.
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.
NVO
44.53%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
NVO’s Operating Profit Margin of 44.53% is exceptionally high, placing it well above the typical range for the Drug Manufacturers - General industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | AVGO | NVO |
|---|---|---|
| Return on Equity (TTM) | 18.95% | 81.24% |
| Return on Assets (TTM) | 7.85% | 21.39% |
| Return on Invested Capital (TTM) | 10.59% | 38.75% |
| Net Profit Margin (TTM) | 22.64% | 34.51% |
| Operating Profit Margin (TTM) | 35.94% | 44.53% |
| Gross Profit Margin (TTM) | 66.09% | 84.33% |
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.
NVO
0.74
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
NVO’s Current Ratio of 0.74 falls into the lower quartile for the Drug Manufacturers - General industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
NVO
0.86
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
NVO’s Debt-to-Equity Ratio of 0.86 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
NVO
17.84
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
NVO’s Interest Coverage Ratio of 17.84 is in the upper quartile for the Drug Manufacturers - General industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AVGO | NVO |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 0.74 |
| Quick Ratio (TTM) | 0.98 | 0.56 |
| Debt-to-Equity Ratio (TTM) | 0.97 | 0.86 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 0.50 |
| Interest Coverage Ratio (TTM) | 5.66 | 17.84 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and NVO. 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.
NVO
2.53%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
NVO’s Dividend Yield of 2.53% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
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.
NVO
48.61%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
NVO’s Dividend Payout Ratio of 48.61% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVGO | NVO |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 2.53% |
| Dividend Payout Ratio (TTM) | 81.25% | 48.61% |
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.
NVO
19.15
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
NVO’s P/E Ratio of 19.15 is within the middle range for the Drug Manufacturers - General 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.
NVO
1.46
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
In the lower quartile for the Drug Manufacturers - General industry, NVO’s Forward PEG Ratio of 1.46 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
NVO
6.68
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
With a P/S Ratio of 6.68, NVO trades at a valuation that eclipses even the highest in the Drug Manufacturers - General industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
NVO
14.46
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
Valuation at a Glance
| Symbol | AVGO | NVO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 19.15 |
| Forward PEG Ratio (TTM) | 4.83 | 1.46 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 6.68 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | 14.46 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 27.08 |
| EV-to-EBITDA (TTM) | 44.94 | 13.08 |
| EV-to-Sales (TTM) | 23.70 | 6.94 |