AVGO vs. PM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and PM, 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 PM’s 278.43 billion USD, indicating a significant difference in their market valuations.
AVGO’s beta of 1.12 points to significantly higher volatility compared to PM (beta: 0.54), suggesting AVGO has greater potential for both gains and losses relative to market movements.
| Symbol | AVGO | PM |
|---|---|---|
| Company Name | Broadcom Inc. | Philip Morris International Inc. |
| Country | US | US |
| Sector | Technology | Consumer Defensive |
| Industry | Semiconductors | Tobacco |
| CEO | Hock E. Tan | Jacek Olczak |
| Price | 275.18 USD | 178.88 USD |
| Market Cap | 1,294.30 billion USD | 278.43 billion USD |
| Beta | 1.12 | 0.54 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 6, 2009 | March 17, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and PM 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.
PM
-72.22%
Tobacco Industry
- Max
- 22.42%
- Q3
- 6.25%
- Median
- 4.04%
- Q1
- -111.21%
- Min
- -150.20%
PM has a negative Return on Equity of -72.22%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
PM
22.44%
Tobacco Industry
- Max
- 30.25%
- Q3
- 17.79%
- Median
- 6.37%
- Q1
- 1.66%
- Min
- 0.12%
In the upper quartile for the Tobacco industry, PM’s Return on Invested Capital of 22.44% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
PM
19.83%
Tobacco Industry
- Max
- 23.93%
- Q3
- 21.88%
- Median
- 11.78%
- Q1
- 6.14%
- Min
- 3.22%
PM’s Net Profit Margin of 19.83% is aligned with the median group of its peers in the Tobacco industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
PM
36.40%
Tobacco Industry
- Max
- 51.15%
- Q3
- 27.45%
- Median
- 14.55%
- Q1
- 4.39%
- Min
- 0.82%
An Operating Profit Margin of 36.40% places PM in the upper quartile for the Tobacco industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AVGO | PM |
|---|---|---|
| Return on Equity (TTM) | 18.95% | -72.22% |
| Return on Assets (TTM) | 7.85% | 11.68% |
| Return on Invested Capital (TTM) | 10.59% | 22.44% |
| Net Profit Margin (TTM) | 22.64% | 19.83% |
| Operating Profit Margin (TTM) | 35.94% | 36.40% |
| Gross Profit Margin (TTM) | 66.09% | 65.11% |
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.
PM
0.79
Tobacco Industry
- Max
- 4.42
- Q3
- 3.65
- Median
- 2.25
- Q1
- 0.78
- Min
- 0.57
PM’s Current Ratio of 0.79 aligns with the median group of the Tobacco industry, indicating that its short-term liquidity is in line with its sector peers.
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.
PM
-4.55
Tobacco Industry
- Max
- 1.48
- Q3
- 0.76
- Median
- 0.74
- Q1
- 0.03
- Min
- 0.01
PM has a Debt-to-Equity Ratio of -4.55, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
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.
PM
9.53
Tobacco Industry
- Max
- 9.53
- Q3
- 8.30
- Median
- 4.34
- Q1
- 2.04
- Min
- -2.25
PM’s Interest Coverage Ratio of 9.53 is in the upper quartile for the Tobacco industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AVGO | PM |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 0.79 |
| Quick Ratio (TTM) | 0.98 | 0.79 |
| Debt-to-Equity Ratio (TTM) | 0.97 | -4.55 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.76 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 2.82 |
| Interest Coverage Ratio (TTM) | 5.66 | 9.53 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and PM. 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.
PM
3.02%
Tobacco Industry
- Max
- 6.94%
- Q3
- 6.23%
- Median
- 2.98%
- Q1
- 0.37%
- Min
- 0.00%
PM’s Dividend Yield of 3.02% is consistent with its peers in the Tobacco 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.
PM
108.91%
Tobacco Industry
- Max
- 171.09%
- Q3
- 98.77%
- Median
- 67.00%
- Q1
- 13.01%
- Min
- 0.00%
PM’s Dividend Payout Ratio of 108.91% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | AVGO | PM |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 3.02% |
| Dividend Payout Ratio (TTM) | 81.25% | 108.91% |
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.
PM
36.58
Tobacco Industry
- Max
- 37.02
- Q3
- 31.70
- Median
- 27.58
- Q1
- 17.76
- Min
- 9.72
A P/E Ratio of 36.58 places PM in the upper quartile for the Tobacco industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
PM
4.12
Tobacco Industry
- Max
- 6.56
- Q3
- 4.77
- Median
- 3.75
- Q1
- 3.29
- Min
- 3.17
The Forward PEG Ratio is often not a primary valuation metric in the Tobacco industry.
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.
PM
7.26
Tobacco Industry
- Max
- 7.35
- Q3
- 7.29
- Median
- 4.89
- Q1
- 2.91
- Min
- 0.49
PM’s P/S Ratio of 7.26 aligns with the market consensus for the Tobacco industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
PM
-25.50
Tobacco Industry
- Max
- 1.61
- Q3
- 1.61
- Median
- 1.52
- Q1
- 1.20
- Min
- 1.00
The P/B Ratio is often not a primary valuation metric for the Tobacco industry.
Valuation at a Glance
| Symbol | AVGO | PM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 36.58 |
| Forward PEG Ratio (TTM) | 4.83 | 4.12 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 7.26 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | -25.50 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 27.31 |
| EV-to-EBITDA (TTM) | 44.94 | 20.18 |
| EV-to-Sales (TTM) | 23.70 | 8.44 |