Comprehensive Stock Comparison
Compare Broadcom Inc. (AVGO) vs ASML Holding N.V. (ASML) 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 ASML's 11.0% |
| Value | ASML | PEG 1.68 vs 2.23 |
| Quality / Margins | AVGO | 36.2% net margin vs ASML's 29.4% |
| Stability / Safety | ASML | Beta 1.45 vs AVGO's 1.75, lower leverage |
| Dividends | AVGO | 0.7% yield, 15-year raise streak, vs ASML's 0.5% |
| Momentum (1Y) | ASML | +105.6% vs AVGO's +61.4% |
| Efficiency (ROA) | ASML | 18.3% ROA vs AVGO's 13.5%, ROIC 80.9% vs 14.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
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.
ASML is the world's only manufacturer of extreme ultraviolet (EUV) lithography machines — the most advanced equipment needed to produce cutting-edge semiconductors. It generates revenue primarily from selling these multi-million-dollar systems (over 80% of sales) and related services like maintenance and upgrades. Its monopoly on EUV technology — which took decades and billions to develop — creates an insurmountable moat, as no competitor can realistically replicate its complex ecosystem.
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 3 of 6 categories (Financial Metrics, Total Returns). ASML leads in 3 (Valuation Metrics, Profitability & Efficiency).
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 2.0x ASML's $31.4B. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to ASML's 29.4%. On growth, AVGO holds the edge at +22.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | AVGOBroadcom Inc. | ASMLASML Holding N.V. |
|---|---|---|
| RevenueTrailing 12 months | $63.9B | $31.4B |
| EBITDAEarnings before interest/tax | $34.2B | $11.8B |
| Net IncomeAfter-tax profit | $23.1B | $9.2B |
| Free Cash FlowCash after capex | $26.9B | $10.7B |
| Gross MarginGross profit ÷ Revenue | +67.8% | +52.8% |
| Operating MarginEBIT ÷ Revenue | +39.9% | +34.6% |
| Net MarginNet income ÷ Revenue | +36.2% | +29.4% |
| FCF MarginFCF ÷ Revenue | +42.1% | +34.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.0% | -9.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.1% | -4.8% |
Valuation Metrics
At 51.8x trailing earnings, ASML trades at a 23% valuation discount to AVGO's 67.0x P/E. Adjusting for growth (PEG ratio), ASML offers better value at 2.10x vs AVGO's 4.80x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | AVGOBroadcom Inc. | ASMLASML Holding N.V. |
|---|---|---|
| Market CapShares × price | $1.52T | $563.0B |
| Enterprise ValueMkt cap + debt − cash | $1.56T | $551.0B |
| Trailing P/EPrice ÷ TTM EPS | 66.99x | 51.82x |
| Forward P/EPrice ÷ next-FY EPS est. | 31.10x | 41.31x |
| PEG RatioP/E ÷ EPS growth rate | 4.80x | 2.10x |
| EV / EBITDAEnterprise value multiple | 44.06x | 39.45x |
| Price / SalesMarket cap ÷ Revenue | 23.71x | 15.21x |
| Price / BookPrice ÷ Book value/share | 19.08x | 24.40x |
| Price / FCFMarket cap ÷ FCF | 56.29x | 44.83x |
Profitability & Efficiency
ASML delivers a 47.1% return on equity — every $100 of shareholder capital generates $47 in annual profit, vs $28 for AVGO. ASML carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), ASML scores 8/9 vs AVGO's 4/9, reflecting strong financial health.
| Metric | AVGOBroadcom Inc. | ASMLASML Holding N.V. |
|---|---|---|
| ROE (TTM)Return on equity | +28.4% | +47.1% |
| ROA (TTM)Return on assets | +13.5% | +18.3% |
| ROICReturn on invested capital | +14.9% | +80.9% |
| ROCEReturn on capital employed | +16.9% | +39.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 8 |
| Debt / EquityFinancial leverage | 0.80x | 0.14x |
| Net DebtTotal debt minus cash | $49.0B | -$10.2B |
| Cash & Equiv.Liquid assets | $16.2B | $12.9B |
| Total DebtShort + long-term debt | $65.1B | $2.7B |
| Interest CoverageEBIT ÷ Interest expense | 8.09x | — |
Total Returns (with DRIP)
A $10,000 investment in AVGO five years ago would be worth $67,244 today (with dividends reinvested), compared to $25,413 for ASML. Over the past 12 months, ASML leads with a +105.6% total return vs AVGO's +61.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs ASML's 33.5% — a key indicator of consistent wealth creation.
| Metric | AVGOBroadcom Inc. | ASMLASML Holding N.V. |
|---|---|---|
| YTD ReturnYear-to-date | -8.1% | +24.8% |
| 1-Year ReturnPast 12 months | +61.4% | +105.6% |
| 3-Year ReturnCumulative with dividends | +448.6% | +138.1% |
| 5-Year ReturnCumulative with dividends | +572.4% | +154.1% |
| 10-Year ReturnCumulative with dividends | +2389.2% | +1540.9% |
| CAGR (3Y)Annualised 3-year return | +76.4% | +33.5% |
Risk & Volatility
ASML is the less volatile stock with a 1.45 beta — it tends to amplify market swings less than AVGO's 1.75 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ASML currently trades 93.8% from its 52-week high vs AVGO's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | AVGOBroadcom Inc. | ASMLASML Holding N.V. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.75x | 1.45x |
| 52-Week HighHighest price in past year | $414.61 | $1547.22 |
| 52-Week LowLowest price in past year | $138.10 | $578.51 |
| % of 52W HighCurrent price vs 52-week peak | +77.1% | +93.8% |
| RSI (14)Momentum oscillator 0–100 | 44.2 | 57.7 |
| Avg Volume (50D)Average daily shares traded | 21.0M | 1.5M |
Analyst Outlook
Wall Street rates AVGO as "Buy" and ASML as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs 0.5% for ASML (target: $1459). For income investors, AVGO offers the higher dividend yield at 0.72% vs ASML's 0.51%.
| Metric | AVGOBroadcom Inc. | ASMLASML Holding N.V. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $443.72 | $1458.50 |
| # AnalystsCovering analysts | 57 | 44 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +0.5% |
| Dividend StreakConsecutive years of raises | 15 | 0 |
| Dividend / ShareAnnual DPS | $2.30 | $6.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +1.2% |
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 |
|---|---|---|---|
| Broadcom Inc. (AVGO) | 100 | 1,161.79 | +1061.8% |
| ASML Holding N.V. (ASML) | 100 | 501.37 | +401.4% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs ASML Holding N.V. (ASML)'s +154%. A $10,000 investment in AVGO 5 years ago would be worth $67,244 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
| ASML Holding N.V. (ASML) | $6.9B | $31.4B | +356.4% |
Broadcom Inc.'s revenue grew from $13.2B (2016) to $63.9B (2025) — a 19.1% CAGR. ASML Holding N.V.'s revenue grew from $6.9B (2016) to $31.4B (2025) — a 18.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
| ASML Holding N.V. (ASML) | 22.7% | 29.4% | +29.8% |
Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025). ASML Holding N.V.'s net margin went from 23% (2016) to 29% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
| ASML Holding N.V. (ASML) | 37.7 | 45.1 | +19.6% |
Broadcom Inc. has traded in a 9x–189x P/E range over 9 years; current trailing P/E is ~67x. ASML Holding N.V. has traded in a 25x–62x P/E range over 9 years; current trailing P/E is ~52x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
| ASML Holding N.V. (ASML) | 3.63 | 23.73 | +553.7% |
Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025). ASML Holding N.V.'s EPS grew from $3.63 (2016) to $23.73 (2025) — a 23% CAGR.
Chart 6Free Cash Flow — 5 Years
Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021). ASML Holding N.V. generated $11B FCF in 2025 (+3% vs 2021).
AVGO vs ASML: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AVGO or ASML a better buy right now?
ASML Holding N.V. (ASML) offers the better valuation at 51.8x trailing P/E (41.3x 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 has the better valuation — AVGO or ASML?
On trailing P/E, ASML Holding N.V. (ASML) is the cheapest at 51.8x versus Broadcom Inc. at 67.0x. On forward P/E, Broadcom Inc. is actually cheaper at 31.1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ASML Holding N.V. wins at 1.68x versus Broadcom Inc.'s 2.23x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — AVGO or ASML?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +154.1% for ASML Holding N.V. (ASML). A $10,000 investment in AVGO five years ago would be worth approximately $67K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AVGO returned +23.9% versus ASML's +1541%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AVGO or ASML?
By beta (market sensitivity over 5 years), ASML Holding N.V. (ASML) is the lower-risk stock at 1.45β versus Broadcom Inc.'s 1.75β — meaning AVGO is approximately 21% more volatile than ASML relative to the S&P 500. On balance sheet safety, ASML Holding N.V. (ASML) carries a lower debt/equity ratio of 14% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — AVGO or ASML?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 29.4% for ASML Holding N.V. — 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 34.6% for ASML. 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.
06Is AVGO or ASML more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, ASML Holding N.V. (ASML) is the more undervalued stock at a PEG of 1.68x versus Broadcom Inc.'s 2.23x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Broadcom Inc. (AVGO) trades at 31.1x forward P/E versus 41.3x for ASML Holding N.V. — 10.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 38.9% to $443.72.
07Which pays a better dividend — AVGO or ASML?
All stocks in this comparison pay dividends. Broadcom Inc. (AVGO) offers the highest yield at 0.7%, versus 0.5% for ASML Holding N.V. (ASML).
08Is AVGO or ASML better for a retirement portfolio?
For long-horizon retirement investors, ASML Holding N.V. (ASML) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.5% yield, +1541% 10Y return). Broadcom Inc. (AVGO) carries a higher beta of 1.75 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ASML: +1541%, AVGO: +23.9%), 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.
09What are the main differences between AVGO and ASML?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. 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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