Comprehensive Stock Comparison
Compare Aehr Test Systems (AEHR) vs Broadcom Inc. (AVGO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AVGO | 23.9% revenue growth vs AEHR's -20.2% |
| Quality / Margins | AVGO | 36.2% net margin vs AEHR's -22.7% |
| Stability / Safety | AVGO | Beta 1.75 vs AEHR's 2.63 |
| Dividends | AVGO | 0.7% yield; 15-year raise streak; AEHR pays no meaningful dividend |
| Momentum (1Y) | AEHR | +288.3% vs AVGO's +61.4% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs AEHR's -7.5%, ROIC 14.9% vs -3.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Aehr Test Systems designs and manufactures specialized test and burn-in equipment for semiconductor manufacturers. It generates revenue primarily from sales of its FOX and ABTS test systems — including wafer-level testers, singulated die testers, and packaged part testers — along with recurring sales of consumable contactors and carriers. The company's key advantage is its proprietary full-wafer contact technology that enables burn-in and testing of entire wafers, a capability particularly valuable for high-reliability applications like automotive and aerospace semiconductors.
Broadcom is a semiconductor and infrastructure software company that designs and supplies critical components for data centers, networking, and connectivity. It generates revenue primarily from semiconductor sales (~70%) and infrastructure software licensing (~30%), with key segments including wired infrastructure, wireless communications, and enterprise storage. The company's moat lies in its deep engineering expertise, extensive patent portfolio, and entrenched positions in mission-critical infrastructure where customers face high switching costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AVGO leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). AEHR leads in 2 (Valuation Metrics, Total Returns). 1 tied.
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 1303.0x AEHR's $49M. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to AEHR's -22.7%. On growth, AVGO holds the edge at +22.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | AEHRAehr Test Systems | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $49M | $63.9B |
| EBITDAEarnings before interest/tax | -$10M | $34.2B |
| Net IncomeAfter-tax profit | -$11M | $23.1B |
| Free Cash FlowCash after capex | -$14M | $26.9B |
| Gross MarginGross profit ÷ Revenue | +30.2% | +67.8% |
| Operating MarginEBIT ÷ Revenue | -27.8% | +39.9% |
| Net MarginNet income ÷ Revenue | -22.7% | +36.2% |
| FCF MarginFCF ÷ Revenue | -28.1% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -26.5% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.2% | +3.1% |
Valuation Metrics
| Metric | AEHRAehr Test Systems | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $1.1B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $1.1B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | -287.92x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | — | 4.80x |
| EV / EBITDAEnterprise value multiple | — | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 19.44x | 23.71x |
| Price / BookPrice ÷ Book value/share | 9.01x | 19.08x |
| Price / FCFMarket cap ÷ FCF | — | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $-8 for AEHR. AEHR carries lower financial leverage with a 0.09x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), AVGO scores 4/9 vs AEHR's 1/9, reflecting mixed financial health.
| Metric | AEHRAehr Test Systems | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -8.5% | +28.4% |
| ROA (TTM)Return on assets | -7.5% | +13.5% |
| ROICReturn on invested capital | -3.0% | +14.9% |
| ROCEReturn on capital employed | -3.2% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 1 | 4 |
| Debt / EquityFinancial leverage | 0.09x | 0.80x |
| Net DebtTotal debt minus cash | -$14M | $49.0B |
| Cash & Equiv.Liquid assets | $25M | $16.2B |
| Total DebtShort + long-term debt | $11M | $65.1B |
| Interest CoverageEBIT ÷ Interest expense | — | 8.09x |
Total Returns (with DRIP)
A $10,000 investment in AEHR five years ago would be worth $121,133 today (with dividends reinvested), compared to $67,244 for AVGO. Over the past 12 months, AEHR leads with a +288.3% total return vs AVGO's +61.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs AEHR's 3.9% — a key indicator of consistent wealth creation.
| Metric | AEHRAehr Test Systems | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +68.9% | -8.1% |
| 1-Year ReturnPast 12 months | +288.3% | +61.4% |
| 3-Year ReturnCumulative with dividends | +12.2% | +448.6% |
| 5-Year ReturnCumulative with dividends | +1111.3% | +572.4% |
| 10-Year ReturnCumulative with dividends | +3045.4% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +3.9% | +76.4% |
Risk & Volatility
AVGO is the less volatile stock with a 1.75 beta — it tends to amplify market swings less than AEHR's 2.63 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AEHR currently trades 86.8% from its 52-week high vs AVGO's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | AEHRAehr Test Systems | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.63x | 1.75x |
| 52-Week HighHighest price in past year | $43.13 | $414.61 |
| 52-Week LowLowest price in past year | $6.27 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +86.8% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 67.7 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 21.0M |
Analyst Outlook
Wall Street rates AEHR as "Hold" and AVGO as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs -33.2% for AEHR (target: $25). AVGO is the only dividend payer here at 0.72% yield — a key consideration for income-focused portfolios.
| Metric | AEHRAehr Test Systems | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $25.00 | $443.72 |
| # AnalystsCovering analysts | 2 | 57 |
| Dividend YieldAnnual dividend ÷ price | — | +0.7% |
| Dividend StreakConsecutive years of raises | — | 15 |
| Dividend / ShareAnnual DPS | — | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Aehr Test Systems (AEHR) | 100 | 1,235.07 | +1135.1% |
| Broadcom Inc. (AVGO) | 100 | 1,207.11 | +1107.1% |
Aehr Test Systems (AEHR) returned +1.1K% over 5 years vs Broadcom Inc. (AVGO)'s +572%. A $10,000 investment in AEHR 5 years ago would be worth $121,133 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Aehr Test Systems (AEHR) | $15M | $59M | +306.6% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
Aehr Test Systems's revenue grew from $15M (2016) to $59M (2025) — a 16.9% CAGR. Broadcom Inc.'s revenue grew from $13.2B (2016) to $63.9B (2025) — a 19.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Aehr Test Systems (AEHR) | -46.8% | -6.6% | +85.8% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
Aehr Test Systems's net margin went from -47% (2016) to -7% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Aehr Test Systems (AEHR) | 70.5 | 14.8 | -79.0% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
Aehr Test Systems has traded in a 15x–71x P/E range over 4 years; current trailing P/E is ~-288x. Broadcom Inc. has traded in a 9x–189x P/E range over 9 years; current trailing P/E is ~67x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Aehr Test Systems (AEHR) | -0.52 | -0.13 | +75.0% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
Aehr Test Systems's EPS grew from $-0.52 (2016) to $-0.13 (2025). Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
Aehr Test Systems generated $-12M FCF in 2025 (-323% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
AEHR vs AVGO: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is AEHR or AVGO a better buy right now?
Broadcom Inc. (AVGO) offers the better valuation at 67.0x trailing P/E (31.1x forward), making it the more compelling value choice. Analysts rate Broadcom Inc. (AVGO) a "Buy" — based on 57 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — AEHR or AVGO?
Over the past 5 years, Aehr Test Systems (AEHR) delivered a total return of +1111%, compared to +572.4% for Broadcom Inc. (AVGO). A $10,000 investment in AEHR five years ago would be worth approximately $121K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AEHR returned +30.5% versus AVGO's +23.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — AEHR or AVGO?
By beta (market sensitivity over 5 years), Broadcom Inc. (AVGO) is the lower-risk stock at 1.75β versus Aehr Test Systems's 2.63β — meaning AEHR is approximately 50% more volatile than AVGO relative to the S&P 500. On balance sheet safety, Aehr Test Systems (AEHR) carries a lower debt/equity ratio of 9% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — AEHR or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus -6.6% for Aehr Test Systems — meaning it keeps 36.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVGO leads at 39.9% versus -7.3% for AEHR. At the gross margin level — before operating expenses — AVGO leads at 67.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is AEHR or AVGO more undervalued right now?
Analyst consensus price targets imply the most upside for AVGO: 38.9% to $443.72.
06Which pays a better dividend — AEHR or AVGO?
In this comparison, AVGO (0.7% yield) pays a dividend. AEHR does not pay a meaningful dividend and should not be held primarily for income.
07Is AEHR or AVGO better for a retirement portfolio?
For long-horizon retirement investors, Broadcom Inc. (AVGO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.7% yield). Aehr Test Systems (AEHR) carries a higher beta of 2.63 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AVGO: +23.9%, AEHR: +30.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between AEHR and AVGO?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. AVGO pays a dividend while AEHR does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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