AVGO vs. STX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and STX, 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 STX’s 31.71 billion USD, indicating a significant difference in their market valuations.
With betas of 1.12 for AVGO and 1.43 for STX, both stocks show similar sensitivity to overall market movements.
| Symbol | AVGO | STX |
|---|---|---|
| Company Name | Broadcom Inc. | Seagate Technology Holdings plc |
| Country | US | IE |
| Sector | Technology | Technology |
| Industry | Semiconductors | Computer Hardware |
| CEO | Hock E. Tan | William David Mosley |
| Price | 275.18 USD | 149.44 USD |
| Market Cap | 1,294.30 billion USD | 31.71 billion USD |
| Beta | 1.12 | 1.43 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | December 11, 2002 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and STX 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.
STX
-127.18%
Computer Hardware Industry
- Max
- 123.03%
- Q3
- 15.78%
- Median
- -13.44%
- Q1
- -119.16%
- Min
- -227.95%
STX has a negative Return on Equity of -127.18%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
STX
30.37%
Computer Hardware Industry
- Max
- 30.37%
- Q3
- 20.44%
- Median
- 7.03%
- Q1
- -12.47%
- Min
- -31.70%
In the upper quartile for the Computer Hardware industry, STX’s Return on Invested Capital of 30.37% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
STX
17.49%
Computer Hardware Industry
- Max
- 40.72%
- Q3
- 10.87%
- Median
- 4.33%
- Q1
- -378.64%
- Min
- -753.20%
A Net Profit Margin of 17.49% places STX in the upper quartile for the Computer Hardware industry, signifying strong profitability and more effective cost management than most of its peers.
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.
STX
19.12%
Computer Hardware Industry
- Max
- 42.27%
- Q3
- 13.53%
- Median
- 4.56%
- Q1
- -295.01%
- Min
- -592.84%
An Operating Profit Margin of 19.12% places STX in the upper quartile for the Computer Hardware 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 | STX |
|---|---|---|
| Return on Equity (TTM) | 18.95% | -127.18% |
| Return on Assets (TTM) | 7.85% | 19.75% |
| Return on Invested Capital (TTM) | 10.59% | 30.37% |
| Net Profit Margin (TTM) | 22.64% | 17.49% |
| Operating Profit Margin (TTM) | 35.94% | 19.12% |
| Gross Profit Margin (TTM) | 66.09% | 33.79% |
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.
STX
1.36
Computer Hardware Industry
- Max
- 20.73
- Q3
- 11.54
- Median
- 2.69
- Q1
- 1.40
- Min
- 0.73
STX’s Current Ratio of 1.36 falls into the lower quartile for the Computer Hardware industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
STX
-6.21
Computer Hardware Industry
- Max
- 1.36
- Q3
- 0.67
- Median
- 0.04
- Q1
- 0.03
- Min
- 0.00
STX has a Debt-to-Equity Ratio of -6.21, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
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.
STX
4.98
Computer Hardware Industry
- Max
- 32.50
- Q3
- 21.85
- Median
- 4.98
- Q1
- -7.71
- Min
- -34.24
STX’s Interest Coverage Ratio of 4.98 is positioned comfortably within the norm for the Computer Hardware industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVGO | STX |
|---|---|---|
| Current Ratio (TTM) | 1.08 | 1.36 |
| Quick Ratio (TTM) | 0.98 | 0.75 |
| Debt-to-Equity Ratio (TTM) | 0.97 | -6.21 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.68 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 2.05 |
| Interest Coverage Ratio (TTM) | 5.66 | 4.98 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and STX. 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.
STX
1.91%
Computer Hardware Industry
- Max
- 9.24%
- Q3
- 1.58%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.91%, STX offers a more attractive income stream than most of its peers in the Computer Hardware industry, signaling a strong commitment to shareholder returns.
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.
STX
39.76%
Computer Hardware Industry
- Max
- 193.79%
- Q3
- 30.72%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
STX’s Dividend Payout Ratio of 39.76% is in the upper quartile for the Computer Hardware 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.
Dividend at a Glance
| Symbol | AVGO | STX |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 1.91% |
| Dividend Payout Ratio (TTM) | 81.25% | 39.76% |
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.
STX
21.21
Computer Hardware Industry
- Max
- 24.60
- Q3
- 24.01
- Median
- 20.31
- Q1
- 18.24
- Min
- 13.38
STX’s P/E Ratio of 21.21 is within the middle range for the Computer Hardware industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
STX
0.71
Computer Hardware Industry
- Max
- 9.77
- Q3
- 5.18
- Median
- 1.77
- Q1
- 1.17
- Min
- 0.02
The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.
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.
STX
3.71
Computer Hardware Industry
- Max
- 57.61
- Q3
- 47.40
- Median
- 3.37
- Q1
- 1.56
- Min
- 0.43
STX’s P/S Ratio of 3.71 aligns with the market consensus for the Computer Hardware industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
STX
-38.22
Computer Hardware Industry
- Max
- 21.21
- Q3
- 14.71
- Median
- 9.28
- Q1
- 3.74
- Min
- 0.43
STX has a negative P/B Ratio of -38.22, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | AVGO | STX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 21.21 |
| Forward PEG Ratio (TTM) | 4.83 | 0.71 |
| Price-to-Sales Ratio (P/S, TTM) | 22.69 | 3.71 |
| Price-to-Book Ratio (P/B, TTM) | 18.61 | -38.22 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 41.03 |
| EV-to-EBITDA (TTM) | 44.94 | 17.02 |
| EV-to-Sales (TTM) | 23.70 | 4.22 |