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

Volatility and Risk

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

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Broadcom Limited $16.93 billion $6.96 billion 204.70
Broadcom Limited Competitors $4.58 billion $1.32 billion 86.46

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

Institutional & Insider Ownership

89.7% of Broadcom Limited shares are held by institutional investors. Comparatively, 68.2% of shares of all “Semiconductors” companies are held by institutional investors. 3.6% of Broadcom Limited shares are held by company insiders. Comparatively, 6.1% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Broadcom Limited and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom Limited 0 1 27 2 3.03
Broadcom Limited Competitors 1151 5279 8873 416 2.54

Broadcom Limited presently has a consensus price target of $277.78, suggesting a potential upside of 15.98%. As a group, “Semiconductors” companies have a potential upside of 11.85%. Given Broadcom Limited’s stronger consensus rating and higher possible upside, equities analysts clearly believe Broadcom Limited is more favorable than its competitors.

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.

Profitability

This table compares Broadcom Limited and its competitors’ 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 -47.33% -0.05% -0.12%

Summary

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

Broadcom Limited Company Profile

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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