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AVGO vs. OKTA: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at AVGO and OKTA, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

AVGO dominates in value with a market cap of 1,080.18 billion USD, eclipsing OKTA’s 20.40 billion USD by roughly 52.94×.

With betas of 1.06 for AVGO and 0.96 for OKTA, both show similar volatility profiles relative to the overall market.

SymbolAVGOOKTA
Company NameBroadcom Inc.Okta, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Infrastructure
CEOMr. Hock E. TanMr. Todd McKinnon
Price229.73 USD122.06 USD
Market Cap1,080.18 billion USD20.40 billion USD
Beta1.060.96
ExchangeNASDAQNASDAQ
IPO DateAugust 6, 2009April 7, 2017
ADRNoNo

Performance Comparison

This chart compares the performance of AVGO and OKTA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of AVGO and OKTA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AVGO and OKTA both trade above a 100× earnings multiple (107.08 and 749.52), reflecting lofty growth narratives priced into their shares.
  • AVGO posts a negative forward PEG of -1.07, hinting at anticipated earnings decline, whereas OKTA at 86.90 has projections for stable or growing earnings.
SymbolAVGOOKTA
Price-to-Earnings Ratio (P/E, TTM)107.08749.52
Forward PEG Ratio (TTM)-1.0786.90
Price-to-Sales Ratio (P/S, TTM)19.817.82
Price-to-Book Ratio (P/B, TTM)15.453.28
Price-to-Free Cash Flow Ratio (P/FCF, TTM)52.1027.80
EV-to-EBITDA (TTM)44.65337.85
EV-to-Sales (TTM)20.868.03
EV-to-Free Cash Flow (TTM)54.8628.54

Dividend Comparison

AVGO delivers a 0.97% dividend yield, blending income with growth, whereas OKTA appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

SymbolAVGOOKTA
Dividend Yield (TTM)0.97%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AVGO and OKTA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • AVGO meets its interest obligations (ratio 6.03). In stark contrast, OKTA’s negative ratio (-37.00) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
SymbolAVGOOKTA
Current Ratio (TTM)1.001.35
Quick Ratio (TTM)0.911.35
Debt-to-Equity Ratio (TTM)0.950.15
Debt-to-Assets Ratio (TTM)0.400.10
Interest Coverage Ratio (TTM)6.03-37.00