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

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Here’s a clear look at AVGO and U, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAVGOU
Company NameBroadcom Inc.Unity Software Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentSoftware
Market Capitalization1,369.51 billion USD15.14 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 6, 2009September 18, 2020
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AVGO and U 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.

AVGO vs. U: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAVGOU
5-Day Price Return-6.45%-6.72%
13-Week Price Return26.25%61.15%
26-Week Price Return23.48%72.81%
52-Week Price Return73.62%114.35%
Month-to-Date Return-0.86%7.43%
Year-to-Date Return25.59%59.50%
10-Day Avg. Volume17.32M13.19M
3-Month Avg. Volume20.79M13.09M
3-Month Volatility30.30%70.37%
Beta1.202.33

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.

U

-13.62%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

U has a negative Return on Equity of -13.62%. 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.

AVGO vs. U: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

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.

U

-24.38%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

U has a negative Net Profit Margin of -24.38%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

AVGO vs. U: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

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.

U

-25.56%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

U has a negative Operating Profit Margin of -25.56%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

AVGO vs. U: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Profitability at a Glance

SymbolAVGOU
Return on Equity (TTM)18.95%-13.62%
Return on Assets (TTM)7.79%-6.47%
Net Profit Margin (TTM)22.64%-24.38%
Operating Profit Margin (TTM)35.94%-25.56%
Gross Profit Margin (TTM)66.35%74.43%

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.

U

2.73

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

U’s Current Ratio of 2.73 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AVGO vs. U: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

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.

U

0.70

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

U’s Debt-to-Equity Ratio of 0.70 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AVGO vs. U: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

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.

U

-27.34

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

U has a negative Interest Coverage Ratio of -27.34. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

AVGO vs. U: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Financial Strength at a Glance

SymbolAVGOU
Current Ratio (MRQ)1.082.73
Quick Ratio (MRQ)0.932.60
Debt-to-Equity Ratio (MRQ)0.970.70
Interest Coverage Ratio (TTM)3.83-27.34

Growth

Revenue Growth

AVGO vs. U: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AVGO vs. U: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

U

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

U 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.

AVGO vs. U: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

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.

U

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

U 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.

AVGO vs. U: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Dividend at a Glance

SymbolAVGOU
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.

U

--

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

P/E Ratio data for U is currently unavailable.

AVGO vs. U: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

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.

U

8.54

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

U’s P/S Ratio of 8.54 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AVGO vs. U: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

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.

U

3.16

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

U’s P/B Ratio of 3.16 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AVGO vs. U: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Valuation at a Glance

SymbolAVGOU
Price-to-Earnings Ratio (TTM)105.02--
Price-to-Sales Ratio (TTM)23.788.54
Price-to-Book Ratio (MRQ)13.563.16
Price-to-Free Cash Flow Ratio (TTM)59.7644.37