Comprehensive Stock Comparison
Compare QUALCOMM Incorporated (QCOM) 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 QCOM's 13.7% |
| Value | QCOM | Lower P/E (12.7x vs 31.1x) |
| Quality / Margins | AVGO | 36.2% net margin vs QCOM's 12.0% |
| Stability / Safety | QCOM | Beta 1.48 vs AVGO's 1.75, lower leverage |
| Dividends | QCOM | 2.4% yield, 23-year raise streak, vs AVGO's 0.7% |
| Momentum (1Y) | AVGO | +61.4% vs QCOM's -7.2% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs QCOM's 10.1%, ROIC 14.9% vs 29.1% |
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
Qualcomm is a semiconductor and wireless technology company that designs and licenses foundational technologies for mobile communications. It generates revenue primarily through selling smartphone chipsets (~75% of revenue) and licensing its extensive patent portfolio for wireless standards like 5G (~25% of revenue). The company's key advantage is its massive portfolio of essential wireless patents—particularly in CDMA and 5G—which creates a licensing moat that generates high-margin recurring revenue.
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
QCOM leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). AVGO leads in 2 (Financial Metrics, Total Returns). 1 tied.
Financial Metrics (TTM)
AVGO and QCOM operate at a comparable scale, with $63.9B and $44.9B in trailing revenue. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to QCOM's 12.0%. On growth, AVGO holds the edge at +22.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | QCOMQUALCOMM Incorpor… | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $44.9B | $63.9B |
| EBITDAEarnings before interest/tax | $13.3B | $34.2B |
| Net IncomeAfter-tax profit | $5.4B | $23.1B |
| Free Cash FlowCash after capex | $12.9B | $26.9B |
| Gross MarginGross profit ÷ Revenue | +55.1% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +27.1% | +39.9% |
| Net MarginNet income ÷ Revenue | +12.0% | +36.2% |
| FCF MarginFCF ÷ Revenue | +28.8% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.0% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -1.8% | +3.1% |
Valuation Metrics
At 28.4x trailing earnings, QCOM trades at a 58% valuation discount to AVGO's 67.0x P/E. Adjusting for growth (PEG ratio), AVGO offers better value at 4.80x vs QCOM's 13.66x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | QCOMQUALCOMM Incorpor… | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $152.9B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $161.4B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | 28.42x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.74x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | 13.66x | 4.80x |
| EV / EBITDAEnterprise value multiple | 11.57x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 3.45x | 23.71x |
| Price / BookPrice ÷ Book value/share | 7.42x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 11.93x | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $23 for QCOM. QCOM carries lower financial leverage with a 0.77x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), QCOM scores 6/9 vs AVGO's 4/9, reflecting solid financial health.
| Metric | QCOMQUALCOMM Incorpor… | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +23.3% | +28.4% |
| ROA (TTM)Return on assets | +10.1% | +13.5% |
| ROICReturn on invested capital | +29.1% | +14.9% |
| ROCEReturn on capital employed | +28.9% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.77x | 0.80x |
| Net DebtTotal debt minus cash | $8.5B | $49.0B |
| Cash & Equiv.Liquid assets | $7.8B | $16.2B |
| Total DebtShort + long-term debt | $16.4B | $65.1B |
| Interest CoverageEBIT ÷ Interest expense | 18.76x | 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 $11,332 for QCOM. Over the past 12 months, AVGO leads with a +61.4% total return vs QCOM's -7.2%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs QCOM's 7.2% — a key indicator of consistent wealth creation.
| Metric | QCOMQUALCOMM Incorpor… | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -17.7% | -8.1% |
| 1-Year ReturnPast 12 months | -7.2% | +61.4% |
| 3-Year ReturnCumulative with dividends | +23.4% | +448.6% |
| 5-Year ReturnCumulative with dividends | +13.3% | +572.4% |
| 10-Year ReturnCumulative with dividends | +234.4% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +7.2% | +76.4% |
Risk & Volatility
QCOM is the less volatile stock with a 1.48 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. AVGO currently trades 77.1% from its 52-week high vs QCOM's 69.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | QCOMQUALCOMM Incorpor… | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.48x | 1.75x |
| 52-Week HighHighest price in past year | $205.95 | $414.61 |
| 52-Week LowLowest price in past year | $120.80 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +69.1% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 45.9 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 8.1M | 21.0M |
Analyst Outlook
Wall Street rates QCOM as "Buy" and AVGO as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs 13.4% for QCOM (target: $162). For income investors, QCOM offers the higher dividend yield at 2.42% vs AVGO's 0.72%.
| Metric | QCOMQUALCOMM Incorpor… | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $161.50 | $443.72 |
| # AnalystsCovering analysts | 67 | 57 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +0.7% |
| Dividend StreakConsecutive years of raises | 23 | 15 |
| Dividend / ShareAnnual DPS | $3.44 | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.7% | +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 |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 100 | 189.45 | +89.4% |
| Broadcom Inc. (AVGO) | 100 | 1,161.79 | +1061.8% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs QUALCOMM Incorporat… (QCOM)'s +13%. 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 |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | $23.6B | $44.3B | +88.0% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
QUALCOMM Incorporated's revenue grew from $23.6B (2016) to $44.3B (2025) — a 7.3% 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 |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 24.2% | 12.5% | -48.3% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
QUALCOMM Incorporated's net margin went from 24% (2016) to 13% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 39 | 34.1 | -12.6% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
QUALCOMM Incorporated has traded in a 10x–39x P/E range over 8 years; current trailing P/E is ~28x. 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 |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 3.81 | 5.01 | +31.5% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
QUALCOMM Incorporated's EPS grew from $3.81 (2016) to $5.01 (2025) — a 3% CAGR. Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
QUALCOMM Incorporated generated $13B FCF in 2025 (+48% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
QCOM vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is QCOM or AVGO a better buy right now?
QUALCOMM Incorporated (QCOM) offers the better valuation at 28.4x trailing P/E (12.7x forward), making it the more compelling value choice. Analysts rate QUALCOMM Incorporated (QCOM) a "Buy" — based on 67 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 — QCOM or AVGO?
On trailing P/E, QUALCOMM Incorporated (QCOM) is the cheapest at 28.4x versus Broadcom Inc. at 67.0x. On forward P/E, QUALCOMM Incorporated is actually cheaper at 12.7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Broadcom Inc. wins at 2.23x versus QUALCOMM Incorporated's 6.13x.
03Which is the better long-term investment — QCOM or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +13.3% for QUALCOMM Incorporated (QCOM). 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 QCOM's +234.4%. 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 — QCOM or AVGO?
By beta (market sensitivity over 5 years), QUALCOMM Incorporated (QCOM) is the lower-risk stock at 1.48β versus Broadcom Inc.'s 1.75β — meaning AVGO is approximately 19% more volatile than QCOM relative to the S&P 500. On balance sheet safety, QUALCOMM Incorporated (QCOM) carries a lower debt/equity ratio of 77% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — QCOM or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 12.5% for QUALCOMM Incorporated — 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 27.9% for QCOM. 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 QCOM or AVGO 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, Broadcom Inc. (AVGO) is the more undervalued stock at a PEG of 2.23x versus QUALCOMM Incorporated's 6.13x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, QUALCOMM Incorporated (QCOM) trades at 12.7x forward P/E versus 31.1x for Broadcom Inc. — 18.4x 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 — QCOM or AVGO?
All stocks in this comparison pay dividends. QUALCOMM Incorporated (QCOM) offers the highest yield at 2.4%, versus 0.7% for Broadcom Inc. (AVGO).
08Is QCOM or AVGO better for a retirement portfolio?
For long-horizon retirement investors, QUALCOMM Incorporated (QCOM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (2.4% yield, +234.4% 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 (QCOM: +234.4%, 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 QCOM 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. 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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