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 Overview
AVGO’s market capitalization of 1,294.30 billion USD is substantially larger than RDDT’s 28.96 billion USD, indicating a significant difference in their market valuations.
RDDT carries a higher beta at 2.02, indicating it’s more sensitive to market moves, while AVGO (beta: 1.12) exhibits greater stability.
| Symbol | AVGO | RDDT |
|---|---|---|
| Company Name | Broadcom Inc. | Reddit, Inc. |
| Country | US | US |
| Sector | Technology | Communication Services |
| Industry | Semiconductors | Internet Content & Information |
| CEO | Hock E. Tan | Steven Ladd Huffman |
| Price | 275.18 USD | 157.03 USD |
| Market Cap | 1,294.30 billion USD | 28.96 billion USD |
| Beta | 1.12 | 2.02 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 6, 2009 | March 21, 2024 |
| ADR | No | No |
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.
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.
RDDT
5.69%
Internet Content & Information Industry
- Max
- 42.68%
- Q3
- 9.10%
- Median
- 3.28%
- Q1
- -14.17%
- Min
- -26.11%
RDDT’s Return on Equity of 5.69% is on par with the norm for the Internet Content & Information industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
RDDT
1.48%
Internet Content & Information Industry
- Max
- 31.34%
- Q3
- 14.95%
- Median
- 3.03%
- Q1
- -6.25%
- Min
- -25.52%
RDDT’s Return on Invested Capital of 1.48% is in line with the norm for the Internet Content & Information industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
RDDT
8.07%
Internet Content & Information Industry
- Max
- 39.11%
- Q3
- 15.31%
- Median
- 4.00%
- Q1
- -6.97%
- Min
- -36.95%
RDDT’s Net Profit Margin of 8.07% is aligned with the median group of its peers in the Internet Content & Information 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.
RDDT
2.25%
Internet Content & Information Industry
- Max
- 42.92%
- Q3
- 15.51%
- Median
- 2.63%
- Q1
- -6.98%
- Min
- -18.41%
RDDT’s Operating Profit Margin of 2.25% is around the midpoint for the Internet Content & Information 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) | 18.95% | 5.69% |
| Return on Assets (TTM) | 7.85% | 4.80% |
| Return on Invested Capital (TTM) | 10.59% | 1.48% |
| Net Profit Margin (TTM) | 22.64% | 8.07% |
| Operating Profit Margin (TTM) | 35.94% | 2.25% |
| Gross Profit Margin (TTM) | 66.09% | 91.08% |
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.
RDDT
12.46
Internet Content & Information Industry
- Max
- 7.37
- Q3
- 3.97
- Median
- 2.42
- Q1
- 1.67
- Min
- 0.33
RDDT’s Current Ratio of 12.46 is exceptionally high, placing it well outside the typical range for the Internet Content & Information 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
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.
RDDT
0.01
Internet Content & Information Industry
- Max
- 0.55
- Q3
- 0.49
- Median
- 0.14
- Q1
- 0.03
- Min
- 0.00
Falling into the lower quartile for the Internet Content & Information industry, RDDT’s Debt-to-Equity Ratio of 0.01 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
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.
RDDT
--
Internet Content & Information Industry
- Max
- 26.56
- Q3
- 12.92
- Median
- 3.11
- Q1
- -5.03
- Min
- -16.11
Interest Coverage Ratio data for RDDT is currently unavailable.
Financial Strength at a Glance
| Symbol | AVGO | RDDT |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 12.46 |
| Quick Ratio (TTM) | 0.98 | 12.46 |
| Debt-to-Equity Ratio (TTM) | 0.97 | 0.01 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | -21.12 |
| Interest Coverage Ratio (TTM) | 5.66 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and RDDT. 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.
RDDT
0.00%
Internet Content & Information Industry
- Max
- 8.40%
- Q3
- 0.00%
- Median
- 0.00%
- 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
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.
RDDT
0.00%
Internet Content & Information Industry
- Max
- 112.27%
- Q3
- 0.00%
- 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) | 0.84% | 0.00% |
| Dividend Payout Ratio (TTM) | 81.25% | 0.00% |
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.
RDDT
244.41
Internet Content & Information Industry
- Max
- 56.51
- Q3
- 39.89
- Median
- 18.31
- Q1
- 10.09
- Min
- 0.08
At 244.41, RDDT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Internet Content & Information industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
RDDT
4.68
Internet Content & Information Industry
- Max
- 4.26
- Q3
- 2.09
- Median
- 0.83
- Q1
- 0.47
- Min
- 0.01
RDDT’s Forward PEG Ratio of 4.68 is exceptionally high for the Internet Content & Information industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
RDDT
19.98
Internet Content & Information Industry
- Max
- 10.83
- Q3
- 6.47
- Median
- 2.35
- Q1
- 0.97
- Min
- 0.66
With a P/S Ratio of 19.98, RDDT trades at a valuation that eclipses even the highest in the Internet Content & Information industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
RDDT
12.89
Internet Content & Information Industry
- Max
- 12.17
- Q3
- 6.35
- Median
- 2.86
- Q1
- 0.91
- Min
- 0.02
The P/B Ratio is often not a primary valuation metric for the Internet Content & Information industry.
Valuation at a Glance
| Symbol | AVGO | RDDT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 244.41 |
| Forward PEG Ratio (TTM) | 4.83 | 4.68 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 19.98 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | 12.89 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 92.47 |
| EV-to-EBITDA (TTM) | 44.94 | 982.90 |
| EV-to-Sales (TTM) | 23.70 | 19.56 |