Seek Returns logo

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

Updated on

Here’s a clear look at AVGO and WIT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

AVGO is a standard domestic listing, while WIT trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolAVGOWIT
Company NameBroadcom Inc.Wipro Limited
CountryUnited StatesIndia
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentIT Services
Market Capitalization1,633.77 billion USD28.98 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 6, 2009October 19, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of AVGO and WIT 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. WIT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAVGOWIT
5-Day Price Return-4.44%0.95%
13-Week Price Return11.79%1.14%
26-Week Price Return47.35%-3.08%
52-Week Price Return97.29%3.09%
Month-to-Date Return-7.35%1.31%
Year-to-Date Return47.71%-19.19%
10-Day Avg. Volume18.63M7.46M
3-Month Avg. Volume21.45M9.05M
3-Month Volatility46.12%19.89%
Beta1.220.73

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.

WIT

15.83%

IT Services Industry

Max
37.08%
Q3
19.28%
Median
14.70%
Q1
6.70%
Min
-8.16%

WIT’s Return on Equity of 15.83% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

AVGO vs. WIT: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

WIT

15.06%

IT Services Industry

Max
17.01%
Q3
11.02%
Median
6.91%
Q1
3.07%
Min
-5.13%

A Net Profit Margin of 15.06% places WIT in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.

AVGO vs. WIT: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

WIT

16.91%

IT Services Industry

Max
23.01%
Q3
15.32%
Median
9.57%
Q1
4.91%
Min
-9.58%

An Operating Profit Margin of 16.91% places WIT in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AVGO vs. WIT: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Profitability at a Glance

SymbolAVGOWIT
Return on Equity (TTM)27.01%15.83%
Return on Assets (TTM)11.45%10.37%
Net Profit Margin (TTM)31.59%15.06%
Operating Profit Margin (TTM)37.81%16.91%
Gross Profit Margin (TTM)67.03%30.12%

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.

WIT

2.26

IT Services Industry

Max
3.02
Q3
1.91
Median
1.36
Q1
1.02
Min
0.49

WIT’s Current Ratio of 2.26 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AVGO vs. WIT: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

WIT

0.19

IT Services Industry

Max
2.55
Q3
1.30
Median
0.55
Q1
0.14
Min
0.00

WIT’s Debt-to-Equity Ratio of 0.19 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.

AVGO vs. WIT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

WIT

--

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
1.68
Min
-28.15

Interest Coverage Ratio data for WIT is currently unavailable.

AVGO vs. WIT: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolAVGOWIT
Current Ratio (MRQ)1.502.26
Quick Ratio (MRQ)1.372.20
Debt-to-Equity Ratio (MRQ)0.880.19
Interest Coverage Ratio (TTM)3.83--

Growth

Revenue Growth

AVGO vs. WIT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AVGO vs. WIT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

WIT

4.65%

IT Services Industry

Max
4.66%
Q3
2.02%
Median
0.66%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 4.65%, WIT offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

AVGO vs. WIT: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

WIT

168.88%

IT Services Industry

Max
93.78%
Q3
63.22%
Median
24.64%
Q1
0.00%
Min
0.00%

At 168.88%, WIT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the IT Services industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

AVGO vs. WIT: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Dividend at a Glance

SymbolAVGOWIT
Dividend Yield (TTM)0.66%4.65%
Dividend Payout Ratio (TTM)57.20%168.88%

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.

WIT

18.35

IT Services Industry

Max
45.03
Q3
30.25
Median
21.01
Q1
16.50
Min
0.00

WIT’s P/E Ratio of 18.35 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.

AVGO vs. WIT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

WIT

2.76

IT Services Industry

Max
5.24
Q3
4.01
Median
2.18
Q1
1.08
Min
0.00

WIT’s P/S Ratio of 2.76 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AVGO vs. WIT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

WIT

2.91

IT Services Industry

Max
9.42
Q3
5.79
Median
3.70
Q1
2.30
Min
0.79

WIT’s P/B Ratio of 2.91 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AVGO vs. WIT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Valuation at a Glance

SymbolAVGOWIT
Price-to-Earnings Ratio (TTM)86.2518.35
Price-to-Sales Ratio (TTM)27.252.76
Price-to-Book Ratio (MRQ)19.112.91
Price-to-Free Cash Flow Ratio (TTM)65.5016.97