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

Company Overview

AVGO dwarfs UNH in market cap, clocking in at 1,080.18 billion USD—about 3.93 times the 274.85 billion USD of its counterpart.

AVGO rides a wilder wave with a beta of 1.06, hinting at bigger swings than UNH’s steadier 0.57.

Performance Comparison

This chart compares the performance of AVGO and UNH 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 UNH 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, UNH at 12.58 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, UNH at 0.82 sidesteps this concern with a more favorable outlook.

Dividend Comparison

Both AVGO at 0.97% and UNH at 2.77% pay dividends, blending income with growth in their strategies. Yet UNH’s 2.77% yield, 185% 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.

Financial Strength Metrics Comparison

This section dives into the financial resilience of AVGO and UNH, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

• UNH’s current ratio of 0.85 dips below 1, leaving short-term liabilities larger than current assets—a scenario that could hinge on cash flow support. On the other hand, AVGO at 1.00 has enough assets to handle its obligations.