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

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Here’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.

SymbolAVGOUI
Company NameBroadcom Inc.Ubiquiti Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsCommunication Equipment
CEOHock E. TanRobert J. Pera
Price275.18 USD423.97 USD
Market Cap1,294.30 billion USD25.65 billion USD
Beta1.121.36
ExchangeNASDAQNYSE
IPO DateAugust 6, 2009October 14, 2011
ADRNoNo

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.

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

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.

AVGO vs. UI: A comparison of their ROE against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their ROIC against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their Net Profit Margin against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their Operating Margin against their respective Semiconductors and Communication Equipment industry benchmarks.

Profitability at a Glance

SymbolAVGOUI
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.

AVGO vs. UI: A comparison of their Current Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their D/E Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their Interest Coverage against their respective Semiconductors and Communication Equipment industry benchmarks.

Financial Strength at a Glance

SymbolAVGOUI
Current Ratio (TTM)1.081.39
Quick Ratio (TTM)0.980.63
Debt-to-Equity Ratio (TTM)0.970.85
Debt-to-Asset Ratio (TTM)0.410.29
Net Debt-to-EBITDA Ratio (TTM)1.920.30
Interest Coverage Ratio (TTM)5.6616.12

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

AVGO vs. UI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AVGO vs. UI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AVGO vs. UI: A comparison of their annual year-over-year 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.

AVGO vs. UI: A comparison of their Dividend Yield against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their Payout Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Dividend at a Glance

SymbolAVGOUI
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.

AVGO vs. UI: A comparison of their P/E Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their Forward PEG Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their P/S Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

AVGO vs. UI: A comparison of their P/B Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Valuation at a Glance

SymbolAVGOUI
Price-to-Earnings Ratio (P/E, TTM)100.2846.71
Forward PEG Ratio (TTM)4.837.36
Price-to-Sales Ratio (P/S, TTM)22.6911.05
Price-to-Book Ratio (P/B, TTM)18.6158.81
Price-to-Free Cash Flow Ratio (P/FCF, TTM)57.0334.79
EV-to-EBITDA (TTM)44.9435.17
EV-to-Sales (TTM)23.7011.14