AVGO vs. TSM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AVGO and TSM, 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 (1,080.18 billion USD) and TSM (994.57 billion USD) sit neck-and-neck in market cap terms.
AVGO at 1.06 and TSM at 1.32 move in sync when it comes to market volatility.
Quick note: TSM sports an ADR tag, marking it as a foreign player on U.S. exchanges, unlike the homegrown AVGO.
| Symbol | AVGO | TSM |
|---|---|---|
| Company Name | Broadcom Inc. | Taiwan Semiconductor Manufacturing Company Limited |
| Country | US | TW |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Mr. Hock E. Tan | Dr. C. C. Wei Ph.D. |
| Price | 229.73 USD | 191.76 USD |
| Market Cap | 1,080.18 billion USD | 994.57 billion USD |
| Beta | 1.059 | 1.321 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 6, 2009 | October 9, 1997 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of AVGO and TSM 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 TSM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AVGO stands out with a P/E of 107.08, far exceeding conventional benchmarks. This elevated figure means its stock price is disproportionately large compared to its earnings over the past twelve months, often reflecting strong investor optimism about its future. Meanwhile, TSM at 19.45 aligns with more typical earnings multiples.
- AVGO carries a negative Forward PEG of -1.07, hinting at analyst expectations of losses or shrinking earnings in the coming period—a potential warning for its future performance. On the flip side, TSM at 1.10 sidesteps this concern with a more favorable outlook.
| Symbol | AVGO | TSM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 107.08 | 19.45 |
| Forward PEG Ratio (TTM) | -1.07 | 1.10 |
| Price-to-Sales Ratio (P/S, TTM) | 19.81 | 8.11 |
| Price-to-Book Ratio (P/B, TTM) | 15.45 | 5.54 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 52.10 | 27.60 |
| EV-to-EBITDA (TTM) | 44.65 | 10.81 |
| EV-to-Sales (TTM) | 20.86 | 7.56 |
| EV-to-Free Cash Flow (TTM) | 54.86 | 25.74 |
Dividend Comparison
Both AVGO at 0.97% and TSM at 1.63% pay dividends, blending income with growth in their strategies. Yet TSM’s 1.63% yield, 67% above AVGO’s 0.97%, suggests a focus on generous payouts—possibly from stronger profits—while AVGO leans toward reinvestment, perhaps due to tighter margins.
| Symbol | AVGO | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 1.63% |
Financial Strength Metrics Comparison
Explore the financial strength details for AVGO and TSM in the table below.
| Symbol | AVGO | TSM |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 2.39 |
| Quick Ratio (TTM) | 0.91 | 2.18 |
| Debt-to-Equity Ratio (TTM) | 0.95 | 0.21 |
| Debt-to-Assets Ratio (TTM) | 0.40 | 0.14 |
| Interest Coverage Ratio (TTM) | 6.03 | 280.65 |