AVGO vs. SNPS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and SNPS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AVGO | SNPS |
|---|---|---|
| Company Name | Broadcom Inc. | Synopsys, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | Software |
| Market Capitalization | 1,369.51 billion USD | 111.24 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | August 6, 2009 | February 26, 1992 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AVGO and SNPS 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 | SNPS |
|---|---|---|
| 5-Day Price Return | -6.45% | -2.47% |
| 13-Week Price Return | 26.25% | 16.50% |
| 26-Week Price Return | 23.48% | 13.79% |
| 52-Week Price Return | 73.62% | 7.69% |
| Month-to-Date Return | -0.86% | -5.11% |
| Year-to-Date Return | 25.59% | 23.85% |
| 10-Day Avg. Volume | 17.32M | 1.07M |
| 3-Month Avg. Volume | 20.79M | 1.51M |
| 3-Month Volatility | 30.30% | 36.46% |
| Beta | 1.20 | 1.17 |
Profitability
Return on Equity (TTM)
AVGO
18.95%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
AVGO’s Return on Equity of 18.95% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
SNPS
24.09%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
In the upper quartile for the Software industry, SNPS’s Return on Equity of 24.09% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
AVGO
22.64%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
A Net Profit Margin of 22.64% 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.
SNPS
34.77%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
A Net Profit Margin of 34.77% places SNPS in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
AVGO
35.94%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
An Operating Profit Margin of 35.94% 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.
SNPS
20.88%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
An Operating Profit Margin of 20.88% places SNPS in the upper quartile for the Software 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 | SNPS |
|---|---|---|
| Return on Equity (TTM) | 18.95% | 24.09% |
| Return on Assets (TTM) | 7.79% | 14.06% |
| Net Profit Margin (TTM) | 22.64% | 34.77% |
| Operating Profit Margin (TTM) | 35.94% | 20.88% |
| Gross Profit Margin (TTM) | 66.35% | 79.84% |
Financial Strength
Current Ratio (MRQ)
AVGO
1.08
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
AVGO’s Current Ratio of 1.08 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.
SNPS
7.02
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
SNPS’s Current Ratio of 7.02 is exceptionally high, placing it well outside the typical range for the Software 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
0.97
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- 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 0.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
SNPS
1.01
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
SNPS’s leverage is in the upper quartile of the Software industry, with a Debt-to-Equity Ratio of 1.01. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
AVGO
3.83
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
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.
SNPS
257.02
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
With an Interest Coverage Ratio of 257.02, SNPS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AVGO | SNPS |
|---|---|---|
| Current Ratio (MRQ) | 1.08 | 7.02 |
| Quick Ratio (MRQ) | 0.93 | 6.72 |
| Debt-to-Equity Ratio (MRQ) | 0.97 | 1.01 |
| Interest Coverage Ratio (TTM) | 3.83 | 257.02 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AVGO
0.77%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Yield of 0.77% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
SNPS
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SNPS 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
54.37%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Payout Ratio of 54.37% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SNPS
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SNPS 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 | SNPS |
|---|---|---|
| Dividend Yield (TTM) | 0.77% | 0.00% |
| Dividend Payout Ratio (TTM) | 54.37% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AVGO
105.02
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
A P/E Ratio of 105.02 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.
SNPS
52.11
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
SNPS’s P/E Ratio of 52.11 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AVGO
23.78
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
With a P/S Ratio of 23.78, 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.
SNPS
18.12
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
SNPS’s P/S Ratio of 18.12 is in the upper echelon for the Software 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
13.56
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
AVGO’s P/B Ratio of 13.56 is in the upper tier for the Semiconductors & Semiconductor Equipment 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.
SNPS
7.16
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
SNPS’s P/B Ratio of 7.16 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AVGO | SNPS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 105.02 | 52.11 |
| Price-to-Sales Ratio (TTM) | 23.78 | 18.12 |
| Price-to-Book Ratio (MRQ) | 13.56 | 7.16 |
| Price-to-Free Cash Flow Ratio (TTM) | 59.76 | 95.84 |