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

Updated

Here’s a clear look at AVGO and SOUN, 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 dominates in value with a market cap of 1,080.18 billion USD, eclipsing SOUN’s 3.80 billion USD by roughly 283.93×.

SOUN carries a higher beta at 2.99, indicating it’s more sensitive to market moves, while AVGO remains steadier at 1.06.

SymbolAVGOSOUN
Company NameBroadcom Inc.SoundHound AI, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Application
CEOMr. Hock E. TanDr. Keyvan Mohajer
Price229.73 USD9.47 USD
Market Cap1,080.18 billion USD3.80 billion USD
Beta1.062.99
ExchangeNASDAQNASDAQ
IPO DateAugust 6, 2009April 28, 2022
ADRNoNo

Performance Comparison

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

  • AVGO trades at a lofty P/E of 107.08, implying strong growth expectations, in contrast to SOUN’s negative P/E of -19.79 driven by recent losses.
  • AVGO posts a negative forward PEG of -1.07, hinting at anticipated earnings decline, whereas SOUN at 0.04 has projections for stable or growing earnings.
  • SOUN reports a negative Price-to-Free Cash Flow ratio of -35.62, showing a cash flow shortfall that could threaten its operational sustainability, while AVGO at 52.10 maintains positive cash flow.
SymbolAVGOSOUN
Price-to-Earnings Ratio (P/E, TTM)107.08-19.79
Forward PEG Ratio (TTM)-1.070.04
Price-to-Sales Ratio (P/S, TTM)19.8137.22
Price-to-Book Ratio (P/B, TTM)15.459.40
Price-to-Free Cash Flow Ratio (P/FCF, TTM)52.10-35.62
EV-to-EBITDA (TTM)44.65-20.15
EV-to-Sales (TTM)20.8634.86
EV-to-Free Cash Flow (TTM)54.86-33.36

Dividend Comparison

AVGO delivers a 0.97% dividend yield, blending income with growth, whereas SOUN appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

SymbolAVGOSOUN
Dividend Yield (TTM)0.97%0.00%

Financial Strength Metrics Comparison

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

  • AVGO meets its interest obligations (ratio 6.03). In stark contrast, SOUN’s negative ratio (-30.16) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
SymbolAVGOSOUN
Current Ratio (TTM)1.004.92
Quick Ratio (TTM)0.914.92
Debt-to-Equity Ratio (TTM)0.950.01
Debt-to-Assets Ratio (TTM)0.400.01
Interest Coverage Ratio (TTM)6.03-30.16