AVGO vs. VRSN: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AVGO and VRSN, 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 dominates in value with a market cap of 1,080.18 billion USD, eclipsing VRSN’s 26.39 billion USD by roughly 40.93×.
With betas of 1.06 for AVGO and 0.80 for VRSN, both show similar volatility profiles relative to the overall market.
| Symbol | AVGO | VRSN |
|---|---|---|
| Company Name | Broadcom Inc. | VeriSign, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Infrastructure |
| CEO | Mr. Hock E. Tan | Mr. D. James Bidzos |
| Price | 229.73 USD | 281.08 USD |
| Market Cap | 1,080.18 billion USD | 26.39 billion USD |
| Beta | 1.06 | 0.80 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | January 30, 1998 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AVGO and VRSN 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 VRSN 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 premium P/E of 107.08, while VRSN at 33.62 remains within a more conventional earnings multiple.
- Analysts assign negative forward PEG ratios to both AVGO (-1.07) and VRSN (-0.34), suggesting expectation of shrinking or negative earnings in the upcoming period—a worrying sign for their profit outlook.
- VRSN carries a sub-zero price-to-book ratio of -18.93, indicating negative equity. In contrast, AVGO (P/B 15.45) has positive book value.
| Symbol | AVGO | VRSN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 107.08 | 33.62 |
| Forward PEG Ratio (TTM) | -1.07 | -0.34 |
| Price-to-Sales Ratio (P/S, TTM) | 19.81 | 16.75 |
| Price-to-Book Ratio (P/B, TTM) | 15.45 | -18.93 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 52.10 | 29.12 |
| EV-to-EBITDA (TTM) | 44.65 | 24.24 |
| EV-to-Sales (TTM) | 20.86 | 17.53 |
| EV-to-Free Cash Flow (TTM) | 54.86 | 30.46 |
Dividend Comparison
AVGO’s dividend yield of 0.97% is about 255% higher than VRSN’s 0.27%, underscoring its stronger focus on returning cash to shareholders.
| Symbol | AVGO | VRSN |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 0.27% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AVGO and VRSN, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- VRSN’s current ratio of 0.56 indicates its assets may not cover near-term debts, whereas AVGO at 1.00 maintains healthy liquidity.
- VRSN posts a quick ratio of 0.56, indicating limited coverage of short-term debts from its most liquid assets—while AVGO at 0.91 enjoys stronger liquidity resilience.
- VRSN has negative equity (debt-to-equity ratio -1.28), suggesting asset shortfalls, whereas AVGO at 0.95 preserves healthier equity coverage.
- VRSN carries a debt-to-assets ratio of 1.24, suggesting substantial asset funding via debt, while AVGO at 0.40 opts for a more conservative financing structure.
| Symbol | AVGO | VRSN |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 0.56 |
| Quick Ratio (TTM) | 0.91 | 0.56 |
| Debt-to-Equity Ratio (TTM) | 0.95 | -1.28 |
| Debt-to-Assets Ratio (TTM) | 0.40 | 1.24 |
| Interest Coverage Ratio (TTM) | 6.03 | 13.94 |