Benzinga
Published Nov 13, 2023 16:00
Updated Nov 13, 2023 17:10
Performance Comparison: Broadcom And Competitors In Semiconductors & Semiconductor Equipment Industry
Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Broadcom (NASDAQ:AVGO) against its key competitors in the Semiconductors & Semiconductor Equipment industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Broadcom Background Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the iPhone. It counts Apple as a large customer at roughly one fifth of sales. In software, it sells infrastructure and security software to large financial institutions and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.
Broadcom Inc | 29.47 | 17.90 | 11.29 | 14.98% | $4.91 | $6.16 | 4.87% |
NVIDIA Corp | 116.75 | 43.41 | 36.85 | 23.79% | $7.41 | $9.46 | 101.48% |
Advanced Micro Devices Inc | 1078.09 | 3.49 | 8.71 | 0.54% | $1.13 | $2.75 | 4.22% |
Qualcomm Inc | 19.05 | 6.41 | 3.90 | 7.05% | $2.06 | $4.75 | -24.26% |
Texas Instruments Inc | 19.07 | 8.04 | 7.45 | 10.44% | $2.34 | $2.81 | -13.53% |
Analog Devices Inc | 23.44 | 2.39 | 6.84 | 2.44% | $1.53 | $1.96 | -1.07% |
ARM Holdings PLC | 297.72 | 11.23 | 18.88 | -2.45% | $-0.12 | $0.76 | 27.94% |
Microchip Technology Inc | 17.01 | 6.02 | 4.79 | 9.66% | $1.1 | $1.53 | 8.74% |
STMicroelectronics NV | 9 | 2.45 | 2.26 | 7.28% | $1.69 | $2.11 | 2.55% |
ON Semiconductor Corp | 13.58 | 3.88 | 3.63 | 8.05% | $0.87 | $1.03 | -0.54% |
GLOBALFOUNDRIES Inc | 20.46 | 2.67 | 3.78 | 2.34% | $0.64 | $0.53 | -10.7% |
United Microelectronics Corp | 7.69 | 1.89 | 2.43 | 4.72% | $29.0 | $20.46 | -24.3% |
ASE Technology Holding Co Ltd | 15.48 | 1.92 | 0.95 | 3.06% | $28.07 | $24.92 | -18.27% |
Skyworks Solutions Inc | 14.69 | 2.36 | 3.02 | 4.09% | $0.4 | $0.48 | 13.78% |
First Solar Inc | 30.30 | 2.27 | 4.54 | 4.35% | $0.37 | $0.38 | 27.37% |
Lattice Semiconductor Corp | 37.47 | 12.55 | 10.73 | 8.96% | $0.06 | $0.13 | 1.1% |
Universal Display Corp | 36.12 | 5.33 | 12.62 | 3.77% | $0.06 | $0.11 | -12.13% |
Rambus Inc | 23.93 | 7.05 | 14.99 | 10.86% | $0.12 | $0.08 | -6.19% |
MACOM Technology Solutions Holdings Inc | 60.23 | 5.78 | 8.50 | 2.63% | $0.03 | $0.09 | 1.25% |
Allegro Microsystems Inc | 19.86 | 4.53 | 4.69 | 6.18% | $0.09 | $0.16 | 15.92% |
Average | 97.89 | 7.04 | 8.4 | 6.2% | $4.04 | $3.92 | 4.91% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } When analyzing Broadcom, the following trends become evident:
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In light of the Debt-to-Equity ratio, a comparison between Broadcom and its top 4 peers reveals the following information:
Key Takeaways Broadcom's low PE ratio suggests that it is undervalued compared to its peers in the Semiconductors & Semiconductor Equipment industry. The high PB and PS ratios indicate that the company's stock price may be overvalued relative to its book value and sales. On the other hand, Broadcom's high ROE, EBITDA, gross profit, and low revenue growth suggest that the company is performing well in terms of profitability and efficiency, but its revenue growth is relatively slow compared to its industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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