Broadcom Inc. (AVGO) vs Intel Corporation (INTC)

Broadcom Inc. and Intel Corporation are both Semiconductors companies. Broadcom Inc. is the larger, with a market value of $1.70T against $686.6B — 2.5× the size. Intel Corporation has negative trailing earnings, so its P/E is not meaningful; Broadcom Inc. trades at 43.8×. Broadcom Inc. grew revenue faster over the last twelve months: 48.7% against 7.47%. Broadcom Inc. has the higher net margin (42.9% vs −19.8%) and the higher return on invested capital (19.8% vs −0.04%). Both pay a dividend; Broadcom Inc. yields more (1.64% vs 1.23%). Across the 22 metrics below, Broadcom Inc. leads on 17 and Intel Corporation on 5.

Valuation

Metric AVGO INTC Semiconductors median
P/E 43.82 n/m 49.41
P/S 18.89 11.01 8.58
P/B 16.88 6.09 5.49
Price to free cash flow 42.72 249.92 47.02
EV/EBITDA 33.32 53.43 30.78
EV/Sales 19.29 11.37 8.79
Earnings yield 2.28% (1.72%) 0.62%
Free cash flow yield 2.34% 0.40% 0.59%

Profitability

Metric AVGO INTC Semiconductors median
Gross margin 68.77% 38.60% 52.25%
Operating margin 48.05% (0.14%) 4.85%
Net margin 42.94% (19.79%) 4.77%
Free cash flow margin 44.22% 4.96% 8.65%
Return on equity 44.25% (10.81%) 3.11%
Return on assets 21.63% (5.72%) 1.91%
Return on invested capital 19.80% (0.04%) 2.46%

Growth

Metric AVGO INTC Semiconductors median
Revenue growth (TTM) 48.69% 7.47% 16.66%
EPS growth (last fiscal year) 287.80% 98.63% —
Revenue growth, 5-year CAGR 21.74% (7.46%) 5.60%
Net income growth, 5-year CAGR 54.08% 0.00% 0.00%

Health

Metric AVGO INTC Semiconductors median
Debt to equity 0.60 0.49 0.05
Current ratio 2.50 1.60 3.35
Net debt to EBITDA 1.43 0.97 0.58

Dividend

Metric AVGO INTC Semiconductors median
Dividend yield 1.64% 1.23% 1.93%
Payout ratio 0.55 0.75 0.00

Size

Metric AVGO INTC Semiconductors median
Market cap 1.70t 686.57b 5.67b

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