AVGO vs. ZS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AVGO and ZS, 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 ZS’s 38.48 billion USD by roughly 28.07×.
With betas of 1.06 for AVGO and 1.14 for ZS, both show similar volatility profiles relative to the overall market.
| Symbol | AVGO | ZS |
|---|---|---|
| Company Name | Broadcom Inc. | Zscaler, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Infrastructure |
| CEO | Mr. Hock E. Tan | Mr. Jagtar Singh Chaudhry |
| Price | 229.73 USD | 248.72 USD |
| Market Cap | 1,080.18 billion USD | 38.48 billion USD |
| Beta | 1.06 | 1.14 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 6, 2009 | March 16, 2018 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AVGO and ZS 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 ZS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AVGO trades at a lofty P/E of 107.08, implying strong growth expectations, in contrast to ZS’s negative P/E of -2461.29 driven by recent losses.
- Analysts assign negative forward PEG ratios to both AVGO (-1.07) and ZS (-183.93), suggesting expectation of shrinking or negative earnings in the upcoming period—a worrying sign for their profit outlook.
| Symbol | AVGO | ZS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 107.08 | -2461.29 |
| Forward PEG Ratio (TTM) | -1.07 | -183.93 |
| Price-to-Sales Ratio (P/S, TTM) | 19.81 | 15.89 |
| Price-to-Book Ratio (P/B, TTM) | 15.45 | 23.78 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 52.10 | 52.41 |
| EV-to-EBITDA (TTM) | 44.65 | 357.47 |
| EV-to-Sales (TTM) | 20.86 | 15.67 |
| EV-to-Free Cash Flow (TTM) | 54.86 | 51.71 |
Dividend Comparison
AVGO delivers a 0.97% dividend yield, blending income with growth, whereas ZS appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.
| Symbol | AVGO | ZS |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AVGO and ZS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- AVGO meets its interest obligations (ratio 6.03). In stark contrast, ZS’s negative ratio (-8.67) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
| Symbol | AVGO | ZS |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 1.20 |
| Quick Ratio (TTM) | 0.91 | 1.20 |
| Debt-to-Equity Ratio (TTM) | 0.95 | 0.77 |
| Debt-to-Assets Ratio (TTM) | 0.40 | 0.25 |
| Interest Coverage Ratio (TTM) | 6.03 | -8.67 |