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

Company Overview

AVGO’s market capitalization of 1,169.37 billion USD is substantially larger than WDC’s 19.43 billion USD, indicating a significant difference in their market valuations.

With betas of 1.12 for AVGO and 1.54 for WDC, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of AVGO and WDC over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AVGO and WDC. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• AVGO’s Price-to-Earnings (P/E) ratio of 90.63 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
• AVGO’s Forward PEG ratio of 4.34 and WDC’s Forward PEG ratio of 2.89 are both considered very high. For AVGO, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. WDC’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
• AVGO’s Price-to-Book (P/B) ratio of 16.82 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.

Dividend Comparison

AVGO’s dividend yield of 0.90% is notably higher than WDC’s 0.18%, suggesting a stronger emphasis on returning cash to shareholders.

Financial Strength Metrics Comparison

Explore the financial strength details for AVGO and WDC in the table below.