Broadcom Inc. (AVGO) vs Texas Instruments Incorporated (TXN)

Broadcom Inc. and Texas Instruments Incorporated are both Semiconductors companies. Broadcom Inc. is the larger, with a market value of $1.70T against $249.3B — 6.8× the size. Texas Instruments Incorporated trades at the lower P/E: 41.9× against 43.8×. Broadcom Inc. grew revenue faster over the last twelve months: 48.7% against 16.7%. Broadcom Inc. has the higher net margin (42.9% vs 31.0%) and the higher return on invested capital (19.8% vs 18.1%). Both pay a dividend; Texas Instruments Incorporated yields more (3.25% vs 1.64%). Across the 23 metrics below, Broadcom Inc. leads on 14 and Texas Instruments Incorporated on 9.

Valuation

Metric AVGO TXN Semiconductors median
P/E 43.82 41.88 49.41
P/S 18.89 13.04 8.58
P/B 16.88 14.08 5.49
Price to free cash flow 42.72 47.02 47.02
EV/EBITDA 33.32 27.56 30.78
EV/Sales 19.29 13.40 8.79
Earnings yield 2.28% 2.39% 0.62%
Free cash flow yield 2.34% 2.13% 0.59%

Profitability

Metric AVGO TXN Semiconductors median
Gross margin 68.77% 58.33% 52.25%
Operating margin 48.05% 37.29% 4.85%
Net margin 42.94% 30.97% 4.77%
Free cash flow margin 44.22% 27.72% 8.65%
Return on equity 44.25% 35.01% 3.11%
Return on assets 21.63% 17.01% 1.91%
Return on invested capital 19.80% 18.09% 2.46%

Growth

Metric AVGO TXN Semiconductors median
Revenue growth (TTM) 48.69% 16.66% 16.66%
EPS growth (last fiscal year) 287.80% 4.81% —
Revenue growth, 5-year CAGR 21.74% 4.10% 5.60%
Net income growth, 5-year CAGR 54.08% (2.23%) 0.00%

Health

Metric AVGO TXN Semiconductors median
Debt to equity 0.60 0.78 0.05
Current ratio 2.50 4.86 3.35
Net debt to EBITDA 1.43 1.14 0.58

Dividend

Metric AVGO TXN Semiconductors median
Dividend yield 1.64% 3.25% 1.93%
Payout ratio 0.55 0.58 0.00

Size

Metric AVGO TXN Semiconductors median
Market cap 1.70t 249.33b 5.67b

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