AVGO vs. VRSN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVGO and VRSN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AVGO | VRSN |
|---|---|---|
| Company Name | Broadcom Inc. | VeriSign, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | IT Services |
| Market Capitalization | 1,633.77 billion USD | 23.61 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | August 6, 2009 | January 30, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AVGO and VRSN 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.
Historical Performance at a Glance
| Symbol | AVGO | VRSN |
|---|---|---|
| 5-Day Price Return | -4.44% | 2.11% |
| 13-Week Price Return | 11.79% | -6.30% |
| 26-Week Price Return | 47.35% | -8.36% |
| 52-Week Price Return | 97.29% | 36.70% |
| Month-to-Date Return | -7.35% | 5.45% |
| Year-to-Date Return | 47.71% | 22.19% |
| 10-Day Avg. Volume | 18.63M | 0.85M |
| 3-Month Avg. Volume | 21.45M | 0.90M |
| 3-Month Volatility | 46.12% | 22.03% |
| Beta | 1.22 | 0.75 |
Profitability
Return on Equity (TTM)
AVGO
27.01%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Return on Equity of 27.01% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
VRSN
113.55%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
VRSN’s Return on Equity of 113.55% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
AVGO
31.59%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
A Net Profit Margin of 31.59% 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.
VRSN
49.86%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
VRSN’s Net Profit Margin of 49.86% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
AVGO
37.81%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
An Operating Profit Margin of 37.81% 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.
VRSN
67.62%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
VRSN’s Operating Profit Margin of 67.62% is exceptionally high, placing it well above the typical range for the IT Services industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | AVGO | VRSN |
|---|---|---|
| Return on Equity (TTM) | 27.01% | 113.55% |
| Return on Assets (TTM) | 11.45% | 57.26% |
| Net Profit Margin (TTM) | 31.59% | 49.86% |
| Operating Profit Margin (TTM) | 37.81% | 67.62% |
| Gross Profit Margin (TTM) | 67.03% | 87.97% |
Financial Strength
Current Ratio (MRQ)
AVGO
1.50
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
AVGO’s Current Ratio of 1.50 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.
VRSN
0.53
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
VRSN’s Current Ratio of 0.53 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
AVGO
0.88
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- 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 0.88. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
VRSN
1.07
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
VRSN’s Debt-to-Equity Ratio of 1.07 is typical for the IT Services 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 (TTM)
AVGO
3.83
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
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.
VRSN
27.96
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
VRSN’s Interest Coverage Ratio of 27.96 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVGO | VRSN |
|---|---|---|
| Current Ratio (MRQ) | 1.50 | 0.53 |
| Quick Ratio (MRQ) | 1.37 | 0.48 |
| Debt-to-Equity Ratio (MRQ) | 0.88 | 1.07 |
| Interest Coverage Ratio (TTM) | 3.83 | 27.96 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AVGO
0.66%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Yield of 0.66% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
VRSN
0.65%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
VRSN’s Dividend Yield of 0.65% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
AVGO
57.20%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Payout Ratio of 57.20% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
VRSN
0.00%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
VRSN 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.
Dividend at a Glance
| Symbol | AVGO | VRSN |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 0.65% |
| Dividend Payout Ratio (TTM) | 57.20% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AVGO
86.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
A P/E Ratio of 86.25 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.
VRSN
27.39
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
VRSN’s P/E Ratio of 27.39 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AVGO
27.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
With a P/S Ratio of 27.25, 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.
VRSN
13.65
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
With a P/S Ratio of 13.65, VRSN trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
AVGO
19.11
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
At 19.11, AVGO’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor 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.
VRSN
11.17
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
At 11.17, VRSN’s P/B Ratio is at an extreme premium to the IT Services 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 | VRSN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 86.25 | 27.39 |
| Price-to-Sales Ratio (TTM) | 27.25 | 13.65 |
| Price-to-Book Ratio (MRQ) | 19.11 | 11.17 |
| Price-to-Free Cash Flow Ratio (TTM) | 65.50 | 22.10 |