Broadcom Limited (NASDAQ: AVGO) is one of 105 public companies in the “Semiconductors” industry, but how does it contrast to its rivals? We will compare Broadcom Limited to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, risk, profitability, earnings and valuation.

Risk and Volatility

Broadcom Limited has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Broadcom Limited’s rivals have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Broadcom Limited and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom Limited 0 1 27 2 3.03
Broadcom Limited Competitors 904 4717 8625 359 2.58

Broadcom Limited currently has a consensus target price of $277.78, indicating a potential upside of 13.04%. As a group, “Semiconductors” companies have a potential upside of 10.92%. Given Broadcom Limited’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Broadcom Limited is more favorable than its rivals.

Dividends

Broadcom Limited pays an annual dividend of $4.08 per share and has a dividend yield of 1.7%. Broadcom Limited pays out 348.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors” companies pay a dividend yield of 1.5% and pay out 58.4% of their earnings in the form of a dividend.

Institutional and Insider Ownership

89.7% of Broadcom Limited shares are held by institutional investors. Comparatively, 67.0% of shares of all “Semiconductors” companies are held by institutional investors. 3.6% of Broadcom Limited shares are held by insiders. Comparatively, 6.6% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Broadcom Limited and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Broadcom Limited $16.93 billion $6.96 billion 210.04
Broadcom Limited Competitors $4.62 billion $1.36 billion 85.79

Broadcom Limited has higher revenue and earnings than its rivals. Broadcom Limited is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Broadcom Limited and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadcom Limited 3.12% 26.82% 11.96%
Broadcom Limited Competitors -47.37% -0.05% -0.13%

Summary

Broadcom Limited beats its rivals on 13 of the 15 factors compared.

About Broadcom Limited

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. It offers a range of products that are used in end-products, such as enterprise and data center networking, home connectivity, set-top boxes (STBs), broadband access, telecommunication equipment, smartphones, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Its product portfolio ranges from discrete devices to complex sub-systems that include multiple device types, and also includes firmware for interfacing between analog and digital systems. Its products include mechanical hardware that interfaces with optoelectronic or capacitive sensors.

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