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

Updated

Here’s a clear look at AVGO and QBTS, 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 dwarfs QBTS in market cap, clocking in at 1,080.18 billion USD—about 243.61 times the 4.43 billion USD of its counterpart.

AVGO at 1.06 and QBTS at 0.89 move in sync when it comes to market volatility.

SymbolAVGOQBTS
Company NameBroadcom Inc.D-Wave Quantum Inc.
CountryUSCA
SectorTechnologyTechnology
IndustrySemiconductorsComputer Hardware
CEOMr. Hock E. TanDr. Alan E. Baratz Ph.D.
Price229.73 USD15.36 USD
Market Cap1,080.18 billion USD4.43 billion USD
Beta1.0590.886
ExchangeNASDAQNYSE
IPO DateAugust 6, 2009December 11, 2020
ADRNoNo

Performance Comparison

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

  • AVGO carries a lofty P/E of 107.08, where its market price towers over its earnings from the past year—investors are paying a significant premium for each dollar of profit. In stark contrast, QBTS at -33.33 is negative, revealing a complete absence of net earnings over the same period.
  • AVGO carries a negative Forward PEG of -1.07, hinting at analyst expectations of losses or shrinking earnings in the coming period—a potential warning for its future performance. On the flip side, QBTS at 1.25 sidesteps this concern with a more favorable outlook.
  • QBTS has a negative Price-to-Free Cash Flow of -84.98, indicating it’s spent more cash than it’s brought in over the past year—a cash flow shortfall that raises questions about its operational sustainability. Meanwhile, AVGO at 52.10 maintains a positive cash position.
SymbolAVGOQBTS
Price-to-Earnings Ratio (P/E, TTM)107.08-33.33
Forward PEG Ratio (TTM)-1.071.25
Price-to-Sales Ratio (P/S, TTM)19.81207.56
Price-to-Book Ratio (P/B, TTM)15.4521.21
Price-to-Free Cash Flow Ratio (P/FCF, TTM)52.10-84.98
EV-to-EBITDA (TTM)44.65-30.97
EV-to-Sales (TTM)20.86193.69
EV-to-Free Cash Flow (TTM)54.86-79.30

Dividend Comparison

AVGO’s 0.97% yield offers steady income while retaining earnings for growth, unlike QBTS, which pays none, reinvesting fully—likely in expansion or R&D—for investors eyeing future gains. This pits AVGO’s balanced approach against QBTS’s long-term focus.

SymbolAVGOQBTS
Dividend Yield (TTM)0.97%0.00%

Financial Strength Metrics Comparison

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

  • QBTS’s -28.05 sits under 1.5, where earnings hug interest costs too closely—a squeeze if income dips. Meanwhile, AVGO at 6.03 has room to breathe.
SymbolAVGOQBTS
Current Ratio (TTM)1.0020.73
Quick Ratio (TTM)0.9120.61
Debt-to-Equity Ratio (TTM)0.950.04
Debt-to-Assets Ratio (TTM)0.400.02
Interest Coverage Ratio (TTM)6.03-28.05