AVGO vs. SPOT: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AVGO and SPOT, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
AVGO’s market capitalization of 1,169.42 billion USD is substantially larger than SPOT’s 135.01 billion USD, indicating a significant difference in their market valuations.
SPOT carries a higher beta at 1.72, indicating it’s more sensitive to market moves, while AVGO (beta: 1.06) exhibits greater stability.
| Symbol | AVGO | SPOT |
|---|---|---|
| Company Name | Broadcom Inc. | Spotify Technology S.A. |
| Country | US | LU |
| Sector | Technology | Communication Services |
| Industry | Semiconductors | Internet Content & Information |
| CEO | Mr. Hock E. Tan | Mr. Daniel G. Ek |
| Price | 248.71 USD | 672 USD |
| Market Cap | 1,169.42 billion USD | 135.01 billion USD |
| Beta | 1.06 | 1.72 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 6, 2009 | April 3, 2018 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AVGO and SPOT over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
This section compares the market valuation of AVGO and SPOT. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- AVGO’s Price-to-Earnings (P/E) ratio of 115.92 and SPOT’s P/E ratio of 103.17 are both very high. For AVGO, this elevated P/E suggests that significant expectations for future earnings growth are already built into its stock price, or it may be overvalued. SPOT’s very high P/E also implies its valuation is rich, possibly indicating market optimism about its prospects or a risk of being overstretched.
- AVGO’s Forward PEG ratio of 5.83 and SPOT’s Forward PEG ratio of 5.22 are both considered very high. For AVGO, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. SPOT’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
- AVGO’s Price-to-Free-Cash-Flow (P/FCF) ratio of 56.40 and SPOT’s P/FCF ratio of 45.07 are both very high. For AVGO, this high ratio indicates investors are paying a significant premium for each dollar of its free cash flow, likely driven by expectations of strong future growth or superior cash flow quality. SPOT’s very high P/FCF also suggests a rich market valuation relative to its current free cash flow, possibly reflecting optimism about its long-term prospects or industry leadership.
| Symbol | AVGO | SPOT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 115.92 | 103.17 |
| Forward PEG Ratio (TTM) | 5.83 | 5.22 |
| Price-to-Sales Ratio (P/S, TTM) | 21.45 | 7.28 |
| Price-to-Book Ratio (P/B, TTM) | 16.73 | 19.26 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 56.40 | 45.07 |
| EV-to-EBITDA (TTM) | 48.15 | 71.12 |
| EV-to-Sales (TTM) | 22.50 | 7.10 |
| EV-to-Free Cash Flow (TTM) | 59.16 | 43.95 |
Dividend Comparison
AVGO provides a 0.90% dividend yield, potentially offering a blend of income and growth, whereas SPOT currently does not pay a dividend, possibly retaining profits to fund operations or growth initiatives.
| Symbol | AVGO | SPOT |
|---|---|---|
| Dividend Yield (TTM) | 0.90% | 0.00% |
Financial Strength Metrics Comparison
Explore the financial strength details for AVGO and SPOT in the table below.
| Symbol | AVGO | SPOT |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 1.48 |
| Quick Ratio (TTM) | 0.91 | 1.48 |
| Debt-to-Equity Ratio (TTM) | 0.95 | 0.34 |
| Interest Coverage Ratio (TTM) | 6.03 | 19.61 |