AVGO vs. RDDT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and RDDT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AVGO | RDDT |
|---|---|---|
| Company Name | Broadcom Inc. | Reddit, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | Semiconductors & Semiconductor Equipment | Interactive Media & Services |
| Market Capitalization | 1,584.31 billion USD | 38.11 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | August 6, 2009 | March 21, 2024 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AVGO and RDDT 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.
Historical Performance at a Glance
| Symbol | AVGO | RDDT |
|---|---|---|
| 5-Day Price Return | 1.69% | -11.46% |
| 13-Week Price Return | 22.36% | 32.77% |
| 26-Week Price Return | 99.08% | 85.03% |
| 52-Week Price Return | 95.18% | 201.81% |
| Month-to-Date Return | 1.69% | -11.46% |
| Year-to-Date Return | 44.71% | 24.59% |
| 10-Day Avg. Volume | 19.45M | 6.64M |
| 3-Month Avg. Volume | 22.76M | 7.21M |
| 3-Month Volatility | 37.89% | 66.51% |
| Beta | 1.20 | 2.11 |
Profitability
Return on Equity (TTM)
AVGO
27.01%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- Min
- -20.69%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Return on Equity of 27.01% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
RDDT
9.93%
Interactive Media & Services Industry
- Max
- 49.37%
- Q3
- 33.08%
- Median
- 10.37%
- Q1
- 5.76%
- Min
- -24.17%
RDDT’s Return on Equity of 9.93% is on par with the norm for the Interactive Media & Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
AVGO
31.59%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
A Net Profit Margin of 31.59% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
RDDT
12.97%
Interactive Media & Services Industry
- Max
- 49.74%
- Q3
- 29.54%
- Median
- 20.53%
- Q1
- 7.52%
- Min
- -14.52%
RDDT’s Net Profit Margin of 12.97% is aligned with the median group of its peers in the Interactive Media & Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
AVGO
37.81%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
An Operating Profit Margin of 37.81% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
RDDT
7.87%
Interactive Media & Services Industry
- Max
- 65.96%
- Q3
- 36.82%
- Median
- 18.53%
- Q1
- 7.69%
- Min
- -18.13%
RDDT’s Operating Profit Margin of 7.87% is around the midpoint for the Interactive Media & Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AVGO | RDDT |
|---|---|---|
| Return on Equity (TTM) | 27.01% | 9.93% |
| Return on Assets (TTM) | 11.45% | 9.04% |
| Net Profit Margin (TTM) | 31.59% | 12.97% |
| Operating Profit Margin (TTM) | 37.81% | 7.87% |
| Gross Profit Margin (TTM) | 67.03% | 91.04% |
Financial Strength
Current Ratio (MRQ)
AVGO
1.50
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
AVGO’s Current Ratio of 1.50 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
RDDT
12.00
Interactive Media & Services Industry
- Max
- 3.92
- Q3
- 2.72
- Median
- 1.85
- Q1
- 1.20
- Min
- 0.25
RDDT’s Current Ratio of 12.00 is exceptionally high, placing it well outside the typical range for the Interactive Media & Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio (MRQ)
AVGO
0.88
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- Q1
- 0.01
- Min
- 0.00
AVGO’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.88. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
RDDT
0.00
Interactive Media & Services Industry
- Max
- 0.85
- Q3
- 0.49
- Median
- 0.29
- Q1
- 0.04
- Min
- 0.00
Falling into the lower quartile for the Interactive Media & Services industry, RDDT’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
AVGO
3.83
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- Q1
- 6.43
- Min
- -7.80
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Interest Coverage Ratio of 3.83 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
RDDT
--
Interactive Media & Services Industry
- Max
- 23.65
- Q3
- 16.48
- Median
- 6.73
- Q1
- -0.87
- Min
- -3.62
Interest Coverage Ratio data for RDDT is currently unavailable.
Financial Strength at a Glance
| Symbol | AVGO | RDDT |
|---|---|---|
| Current Ratio (MRQ) | 1.50 | 12.00 |
| Quick Ratio (MRQ) | 1.37 | 11.89 |
| Debt-to-Equity Ratio (MRQ) | 0.88 | 0.00 |
| Interest Coverage Ratio (TTM) | 3.83 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AVGO
0.68%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Yield of 0.68% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
RDDT
0.00%
Interactive Media & Services Industry
- Max
- 3.07%
- Q3
- 1.27%
- Median
- 0.28%
- Q1
- 0.00%
- Min
- 0.00%
RDDT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
AVGO
57.20%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Payout Ratio of 57.20% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
RDDT
0.00%
Interactive Media & Services Industry
- Max
- 101.53%
- Q3
- 40.64%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
RDDT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AVGO | RDDT |
|---|---|---|
| Dividend Yield (TTM) | 0.68% | 0.00% |
| Dividend Payout Ratio (TTM) | 57.20% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AVGO
84.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
A P/E Ratio of 84.32 places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
RDDT
176.16
Interactive Media & Services Industry
- Max
- 50.72
- Q3
- 41.60
- Median
- 25.84
- Q1
- 18.18
- Min
- 1.76
At 176.16, RDDT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Interactive Media & Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
AVGO
26.64
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
With a P/S Ratio of 26.64, AVGO trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
RDDT
22.85
Interactive Media & Services Industry
- Max
- 23.76
- Q3
- 11.40
- Median
- 7.69
- Q1
- 2.49
- Min
- 0.00
RDDT’s P/S Ratio of 22.85 is in the upper echelon for the Interactive Media & Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
AVGO
19.11
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
At 19.11, AVGO’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment 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.
RDDT
11.64
Interactive Media & Services Industry
- Max
- 16.71
- Q3
- 9.00
- Median
- 3.97
- Q1
- 2.19
- Min
- 0.33
RDDT’s P/B Ratio of 11.64 is in the upper tier for the Interactive Media & Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | AVGO | RDDT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 84.32 | 176.16 |
| Price-to-Sales Ratio (TTM) | 26.64 | 22.85 |
| Price-to-Book Ratio (MRQ) | 19.11 | 11.64 |
| Price-to-Free Cash Flow Ratio (TTM) | 64.03 | 96.03 |