Broadcom Inc. (AVGO) vs Micron Technology, Inc. (MU)

Broadcom Inc. and Micron Technology, Inc. are both Semiconductors companies. Broadcom Inc. is the larger, with a market value of $1.70T against $1.24T — 1.4× the size. Micron Technology, Inc. trades at the lower P/E: 24.2× against 43.8×. Micron Technology, Inc. grew revenue faster over the last twelve months: 167.0% against 48.7%. Micron Technology, Inc. has the higher net margin (55.9% vs 42.9%) and the higher return on invested capital (46.0% vs 19.8%). Both pay a dividend; Broadcom Inc. yields more (1.64% vs 0.50%). Across the 23 metrics below, Micron Technology, Inc. leads on 17 and Broadcom Inc. on 6.

Valuation

Metric AVGO MU Semiconductors median
P/E 43.82 24.16 49.41
P/S 18.89 13.52 8.58
P/B 16.88 12.12 5.49
Price to free cash flow 42.72 46.65 47.02
EV/EBITDA 33.32 17.59 30.78
EV/Sales 19.29 13.30 8.79
Earnings yield 2.28% 4.14% 0.62%
Free cash flow yield 2.34% 2.14% 0.59%

Profitability

Metric AVGO MU Semiconductors median
Gross margin 68.77% 72.57% 52.25%
Operating margin 48.05% 65.63% 4.85%
Net margin 42.94% 55.91% 4.77%
Free cash flow margin 44.22% 28.99% 8.65%
Return on equity 44.25% 66.64% 3.11%
Return on assets 21.63% 47.50% 1.91%
Return on invested capital 19.80% 46.04% 2.46%

Growth

Metric AVGO MU Semiconductors median
Revenue growth (TTM) 48.69% 166.98% 16.66%
EPS growth (last fiscal year) 287.80% 984.29% —
Revenue growth, 5-year CAGR 21.74% 11.76% 5.60%
Net income growth, 5-year CAGR 54.08% 26.02% 0.00%

Health

Metric AVGO MU Semiconductors median
Debt to equity 0.60 0.06 0.05
Current ratio 2.50 3.42 3.35
Net debt to EBITDA 1.43 0.24 0.58

Dividend

Metric AVGO MU Semiconductors median
Dividend yield 1.64% 0.50% 1.93%
Payout ratio 0.55 0.05 0.00

Size

Metric AVGO MU Semiconductors median
Market cap 1.70t 1.24t 5.67b

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