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

Updated

Here’s a clear look at AVGO and PANW, 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 PANW’s 120.01 billion USD by roughly 9.00×.

With betas of 1.06 for AVGO and 1.02 for PANW, both show similar volatility profiles relative to the overall market.

SymbolAVGOPANW
Company NameBroadcom Inc.Palo Alto Networks, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Infrastructure
CEOMr. Hock E. TanMr. Nikesh Arora C.F.A.
Price229.73 USD181.26 USD
Market Cap1,080.18 billion USD120.01 billion USD
Beta1.061.02
ExchangeNASDAQNASDAQ
IPO DateAugust 6, 2009July 20, 2012
ADRNoNo

Performance Comparison

This chart compares the performance of AVGO and PANW 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 PANW based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AVGO stands out with a premium P/E of 107.08, while PANW at 95.26 remains within a more conventional earnings multiple.
  • Analysts assign negative forward PEG ratios to both AVGO (-1.07) and PANW (-0.95), suggesting expectation of shrinking or negative earnings in the upcoming period—a worrying sign for their profit outlook.
SymbolAVGOPANW
Price-to-Earnings Ratio (P/E, TTM)107.0895.26
Forward PEG Ratio (TTM)-1.07-0.95
Price-to-Sales Ratio (P/S, TTM)19.8114.00
Price-to-Book Ratio (P/B, TTM)15.4518.74
Price-to-Free Cash Flow Ratio (P/FCF, TTM)52.1040.33
EV-to-EBITDA (TTM)44.6578.26
EV-to-Sales (TTM)20.8613.85
EV-to-Free Cash Flow (TTM)54.8639.88

Dividend Comparison

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

SymbolAVGOPANW
Dividend Yield (TTM)0.97%0.00%

Financial Strength Metrics Comparison

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

  • PANW’s current ratio of 0.84 indicates its assets may not cover near-term debts, whereas AVGO at 1.00 maintains healthy liquidity.
SymbolAVGOPANW
Current Ratio (TTM)1.000.84
Quick Ratio (TTM)0.910.84
Debt-to-Equity Ratio (TTM)0.950.14
Debt-to-Assets Ratio (TTM)0.400.04
Interest Coverage Ratio (TTM)6.03591.06