Advanced Micro Devices, Inc. (AMD) vs Broadcom Inc. (AVGO)

Advanced Micro Devices, Inc. and Broadcom Inc. are both Semiconductors companies. Broadcom Inc. is the larger, with a market value of $1.70T against $1.05T — 1.6× the size. Broadcom Inc. trades at the lower P/E: 43.8× against 160×. Broadcom Inc. grew revenue faster over the last twelve months: 48.7% against 39.5%. Broadcom Inc. has the higher net margin (42.9% vs 15.6%) and the higher return on invested capital (19.8% vs 7.07%). Across the 22 metrics below, Broadcom Inc. leads on 17 and Advanced Micro Devices, Inc. on 5.

Valuation

Metric AMD AVGO Semiconductors median
P/E 159.65 43.82 49.41
P/S 24.92 18.89 8.58
P/B 15.31 16.88 5.49
Price to free cash flow 122.71 42.72 47.02
EV/EBITDA 107.13 33.32 30.78
EV/Sales 24.68 19.29 8.79
Earnings yield 0.63% 2.28% 0.62%
Free cash flow yield 0.81% 2.34% 0.59%

Profitability

Metric AMD AVGO Semiconductors median
Gross margin 53.20% 68.77% 52.25%
Operating margin 15.71% 48.05% 4.85%
Net margin 15.58% 42.94% 4.77%
Free cash flow margin 20.31% 44.22% 8.65%
Return on equity 10.14% 44.25% 3.11%
Return on assets 8.08% 21.63% 1.91%
Return on invested capital 7.07% 19.80% 2.46%

Growth

Metric AMD AVGO Semiconductors median
Revenue growth (TTM) 39.54% 48.69% 16.66%
EPS growth (last fiscal year) 165.00% 287.80% —
Revenue growth, 5-year CAGR 28.82% 21.74% 5.60%
Net income growth, 5-year CAGR 11.73% 54.08% 0.00%

Health

Metric AMD AVGO Semiconductors median
Debt to equity 0.05 0.60 0.05
Current ratio 2.61 2.50 3.35
Net debt to EBITDA (1.09) 1.43 0.58

Dividend

Metric AMD AVGO Semiconductors median
Dividend yield — 1.64% 1.93%
Payout ratio 0.00 0.55 0.00

Size

Metric AMD AVGO Semiconductors median
Market cap 1.05t 1.70t 5.67b

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