Broadcom Inc. (AVGO)’s Financial Results Comparing With Advanced Micro Devices Inc. (NASDAQ:AMD)

As Semiconductor – Broad Line companies, Broadcom Inc. (NASDAQ:AVGO) and Advanced Micro Devices Inc. (NASDAQ:AMD) are our subject to contrast. And more specifically their profitability, analyst recommendations, institutional ownership, risk, dividends, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadcom Inc. 21.31B 5.85 6.51B 11.39 24.13
Advanced Micro Devices Inc. 6.47B 4.54 337.00M 0.32 72.80

Table 1 shows the top-line revenue, earnings per share and valuation for Broadcom Inc. and Advanced Micro Devices Inc. Advanced Micro Devices Inc. seems to has lower revenue and earnings compared to Broadcom Inc. The company that is more affordable between the two has a lower price-to-earnings ratio. Broadcom Inc. is thus presently the affordable of the two stocks because it has a lower price-to-earnings ratio.


Table 2 demonstrates the return on assets, net margins and return on equity of Broadcom Inc. and Advanced Micro Devices Inc.

Net Margins Return on Equity Return on Assets
Broadcom Inc. 30.55% 43.8% 23.4%
Advanced Micro Devices Inc. 5.21% 33.8% 8%

Volatility and Risk

Broadcom Inc. is 33.00% less volatile than Standard and Poor’s 500 due to its 0.67 beta. Advanced Micro Devices Inc.’s 238.00% more volatile than Standard and Poor’s 500 volatility due to the company’s 3.38 beta.


3.9 and 3.4 are the respective Current Ratio and a Quick Ratio of Broadcom Inc. Its rival Advanced Micro Devices Inc.’s Current and Quick Ratios are 1.8 and 1.4 respectively. Broadcom Inc. has a better chance of clearing its pay short and long-term debts than Advanced Micro Devices Inc.


The annual dividend that Broadcom Inc. pay is $8.8 per share with a dividend yield of 2.78%. Advanced Micro Devices Inc. does not pay a dividend.

Analyst Recommendations

The table given features the ratings and recommendations for Broadcom Inc. and Advanced Micro Devices Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Broadcom Inc. 0 4 19 2.83
Advanced Micro Devices Inc. 1 4 5 2.50

Broadcom Inc. has a consensus price target of $309.83, and a -1.59% downside potential. On the other hand, Advanced Micro Devices Inc.’s potential upside is 5.81% and its consensus price target is $28.78. The data from earlier shows that analysts belief suggest that Advanced Micro Devices Inc. seems more appealing than Broadcom Inc.

Institutional and Insider Ownership

The shares of both Broadcom Inc. and Advanced Micro Devices Inc. are owned by institutional investors at 88.3% and 66.8% respectively. 0.2% are Broadcom Inc.’s share owned by insiders. On the other hand, insiders owned about 0.7% of Advanced Micro Devices Inc.’s shares.


Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Broadcom Inc. -1.33% 2.48% 16.87% 27.86% 12.98% 8.11%
Advanced Micro Devices Inc. -5.42% -4.26% 9.51% -7.26% 96.39% 26.6%

For the past year Broadcom Inc. has weaker performance than Advanced Micro Devices Inc.


Broadcom Inc. beats on 13 of the 16 factors Advanced Micro Devices Inc.

Broadcom Limited designs, develops, and supplies a range of semiconductor devices worldwide. It focuses on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application specific standard products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; and preamplifiers. The Industrial & Other segment optocouplers; industrial fiber optics motion control encoders and subsystems; and light emitting diodes. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. The company was formerly known as Avago Technologies Limited and changed its name to Broadcom Limited in February 2016. Broadcom Limited was founded in 2005 and is headquartered in Singapore.

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. Its primarily offers x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs), and professional graphics; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles. The company provides x86 microprocessors for desktop PCs under the AMD A-Series, AMD E-Series, AMD FX CPU, AMD Athlon CPU and APU, AMD Sempron APU and CPU, and AMD Pro A-Series APU brands; and microprocessors for notebook and 2-in-1s under the AMD A-Series, AMD E-Series, AMD C-Series, AMD Z-Series, AMD FX APU, AMD Phenom, AMD Athlon CPU and APU, AMD Turion, and AMD Sempron APU and CPU brand names. It also offers chipsets with and without integrated graphics features for desktop, notebook PCs, and servers, as well as controller hub-based chipsets for its APUs under the AMD brand; and AMD PRO mobile and desktop PC solutions. In addition, the company provides discrete GPUs for desktop and notebook PCs under the AMD Radeon brand; professional graphics products under the AMD FirePro brand name; and customer-specific solutions based on AMDÂ’s CPU, GPU, and multi-media technologies. Further, it offers microprocessors for server platforms under the AMD Opteron; embedded processor solutions for interactive digital signage, casino gaming, and medical imaging under the AMD Opteron, AMD Athlon, AMD Sempron, AMD Geode, AMD R-Series, and G-Series brand names; and semi-custom SoC products that power the Sony Playstation 4, Microsoft Xbox One, and Xbox One S game consoles. The company sells its products through its direct sales force, independent distributors, and sales representatives. It primarily serves original equipment manufacturers, original design manufacturers, system builders, and independent distributors. Advanced Micro Devices, Inc. was founded in 1969 and is headquartered in Sunnyvale, California.

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