AVGO vs. UI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and UI, 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 UI’s 25.65 billion USD, indicating a significant difference in their market valuations.
With betas of 1.12 for AVGO and 1.36 for UI, both stocks show similar sensitivity to overall market movements.
Symbol | AVGO | UI |
---|---|---|
Company Name | Broadcom Inc. | Ubiquiti Inc. |
Country | US | US |
Sector | Technology | Technology |
Industry | Semiconductors | Communication Equipment |
CEO | Hock E. Tan | Robert J. Pera |
Price | 275.18 USD | 423.97 USD |
Market Cap | 1,294.30 billion USD | 25.65 billion USD |
Beta | 1.12 | 1.36 |
Exchange | NASDAQ | NYSE |
IPO Date | August 6, 2009 | October 14, 2011 |
ADR | No | No |
Historical Performance
This chart compares the performance of AVGO and UI 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.
UI
217.49%
Communication Equipment Industry
- Max
- 30.07%
- Q3
- 8.07%
- Median
- 1.84%
- Q1
- -11.93%
- Min
- -31.65%
UI’s Return on Equity of 217.49% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
UI
68.13%
Communication Equipment Industry
- Max
- 11.59%
- Q3
- 6.61%
- Median
- 2.97%
- Q1
- -2.58%
- Min
- -13.18%
UI’s Return on Invested Capital of 68.13% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
UI
23.65%
Communication Equipment Industry
- Max
- 23.65%
- Q3
- 9.21%
- Median
- 2.46%
- Q1
- -8.56%
- Min
- -29.87%
A Net Profit Margin of 23.65% places UI in the upper quartile for the Communication Equipment 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.
UI
30.72%
Communication Equipment Industry
- Max
- 30.72%
- Q3
- 11.64%
- Median
- 5.79%
- Q1
- -2.28%
- Min
- -18.20%
An Operating Profit Margin of 30.72% places UI in the upper quartile for the Communication Equipment 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 | UI |
---|---|---|
Return on Equity (TTM) | 18.95% | 217.49% |
Return on Assets (TTM) | 7.85% | 42.29% |
Return on Invested Capital (TTM) | 10.59% | 68.13% |
Net Profit Margin (TTM) | 22.64% | 23.65% |
Operating Profit Margin (TTM) | 35.94% | 30.72% |
Gross Profit Margin (TTM) | 66.09% | 42.16% |
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.
UI
1.39
Communication Equipment Industry
- Max
- 3.40
- Q3
- 2.59
- Median
- 1.62
- Q1
- 1.32
- Min
- 0.86
UI’s Current Ratio of 1.39 aligns with the median group of the Communication Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
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.
UI
0.85
Communication Equipment Industry
- Max
- 1.82
- Q3
- 1.00
- Median
- 0.53
- Q1
- 0.20
- Min
- 0.02
UI’s Debt-to-Equity Ratio of 0.85 is typical for the Communication Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
UI
16.12
Communication Equipment Industry
- Max
- 16.12
- Q3
- 9.22
- Median
- 2.52
- Q1
- -0.75
- Min
- -12.07
UI’s Interest Coverage Ratio of 16.12 is in the upper quartile for the Communication Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
Symbol | AVGO | UI |
---|---|---|
Current Ratio (TTM) | 1.08 | 1.39 |
Quick Ratio (TTM) | 0.98 | 0.63 |
Debt-to-Equity Ratio (TTM) | 0.97 | 0.85 |
Debt-to-Asset Ratio (TTM) | 0.41 | 0.29 |
Net Debt-to-EBITDA Ratio (TTM) | 1.92 | 0.30 |
Interest Coverage Ratio (TTM) | 5.66 | 16.12 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVGO and UI. 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.
UI
0.57%
Communication Equipment Industry
- Max
- 4.72%
- Q3
- 0.38%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.57%, UI offers a more attractive income stream than most of its peers in the Communication Equipment 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.
UI
26.44%
Communication Equipment Industry
- Max
- 91.96%
- Q3
- 26.44%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
UI’s Dividend Payout Ratio of 26.44% is within the typical range for the Communication Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
Symbol | AVGO | UI |
---|---|---|
Dividend Yield (TTM) | 0.84% | 0.57% |
Dividend Payout Ratio (TTM) | 81.25% | 26.44% |
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.
UI
46.71
Communication Equipment Industry
- Max
- 44.37
- Q3
- 41.98
- Median
- 30.61
- Q1
- 23.44
- Min
- 2.14
At 46.71, UI’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communication Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
UI
7.36
Communication Equipment Industry
- Max
- 15.97
- Q3
- 6.99
- Median
- 2.78
- Q1
- 0.66
- Min
- 0.05
The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment 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.
UI
11.05
Communication Equipment Industry
- Max
- 6.38
- Q3
- 3.88
- Median
- 2.17
- Q1
- 1.15
- Min
- 0.37
With a P/S Ratio of 11.05, UI trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
UI
58.81
Communication Equipment Industry
- Max
- 14.42
- Q3
- 7.01
- Median
- 3.09
- Q1
- 1.38
- Min
- 0.41
At 58.81, UI’s P/B Ratio is at an extreme premium to the Communication Equipment 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.
Valuation at a Glance
Symbol | AVGO | UI |
---|---|---|
Price-to-Earnings Ratio (P/E, TTM) | 100.28 | 46.71 |
Forward PEG Ratio (TTM) | 4.83 | 7.36 |
Price-to-Sales Ratio (P/S, TTM) | 22.69 | 11.05 |
Price-to-Book Ratio (P/B, TTM) | 18.61 | 58.81 |
Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 57.03 | 34.79 |
EV-to-EBITDA (TTM) | 44.94 | 35.17 |
EV-to-Sales (TTM) | 23.70 | 11.14 |