Broadcom Limited (NASDAQ: AVGO) is one of 104 publicly-traded companies in the “Semiconductors” industry, but how does it compare to its rivals? We will compare Broadcom Limited to similar companies based off the strength of its dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Volatility and Risk

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

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 1.6% and pay out 58.5% of their earnings in the form of a dividend.

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 -47.63% 0.26% 0.13%

Earnings & Valuation

This table compares Broadcom Limited and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Broadcom Limited $16.93 billion $6.99 billion 208.64
Broadcom Limited Competitors $4.51 billion $1.30 billion 82.15

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 the more expensive than other companies in its industry.

Insider and Institutional Ownership

90.0% of Broadcom Limited shares are owned by institutional investors. Comparatively, 68.3% of shares of all “Semiconductors” companies are owned by institutional investors. 3.6% of Broadcom Limited shares are owned by insiders. Comparatively, 6.1% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Broadcom Limited and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom Limited 0 1 29 1 3.00
Broadcom Limited Competitors 1143 5226 8746 406 2.54

Broadcom Limited presently has a consensus target price of $272.53, indicating a potential upside of 11.64%. All “Semiconductors” companies have a potential upside of 18.25%. Given Broadcom Limited’s rivals higher probable upside, analysts clearly believe Broadcom Limited has less favorable growth aspects than its rivals.

Summary

Broadcom Limited beats its rivals on 10 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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