Comprehensive Stock Comparison
Compare Silicon Motion Technology Corporation (SIMO) vs Broadcom Inc. (AVGO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AVGO | 23.9% revenue growth vs SIMO's 10.2% |
| Value | SIMO | Lower P/E (22.4x vs 31.1x), PEG 0.50 vs 2.23 |
| Quality / Margins | AVGO | 36.2% net margin vs SIMO's 13.8% |
| Stability / Safety | SIMO | Beta 1.52 vs AVGO's 1.75 |
| Dividends | SIMO | 6.2% yield, 2-year raise streak, vs AVGO's 0.7% |
| Momentum (1Y) | SIMO | +133.9% vs AVGO's +61.4% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs SIMO's 10.0%, ROIC 14.9% vs 12.4% |
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
Silicon Motion Technology designs and sells NAND flash controllers and specialized SSDs for data storage applications. It generates revenue primarily from controller sales for client SSDs (~50% of revenue), enterprise/data center SSDs (~25%), and mobile embedded storage solutions (~25%). The company's key advantage is its deep expertise in flash controller architecture—particularly for high-performance applications—and long-standing relationships with major NAND flash manufacturers.
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 3 of 6 categories (Financial Metrics, Profitability & Efficiency). SIMO leads in 2 (Valuation Metrics, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 72.1x SIMO's $886M. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to SIMO's 13.8%. On growth, SIMO holds the edge at +45.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SIMOSilicon Motion Te… | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $886M | $63.9B |
| EBITDAEarnings before interest/tax | $123M | $34.2B |
| Net IncomeAfter-tax profit | $123M | $23.1B |
| Free Cash FlowCash after capex | $6M | $26.9B |
| Gross MarginGross profit ÷ Revenue | +48.3% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +10.5% | +39.9% |
| Net MarginNet income ÷ Revenue | +13.8% | +36.2% |
| FCF MarginFCF ÷ Revenue | +0.7% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +45.7% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +7.4% | +3.1% |
Valuation Metrics
At 8.9x trailing earnings, SIMO trades at a 87% valuation discount to AVGO's 67.0x P/E. Adjusting for growth (PEG ratio), SIMO offers better value at 0.20x vs AVGO's 4.80x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SIMOSilicon Motion Te… | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $4.4B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $4.2B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | 8.85x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.36x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | 0.20x | 4.80x |
| EV / EBITDAEnterprise value multiple | 34.01x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 4.96x | 23.71x |
| Price / BookPrice ÷ Book value/share | 1.31x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 699.54x | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $15 for SIMO. On the Piotroski fundamental quality scale (0–9), SIMO scores 5/9 vs AVGO's 4/9, reflecting solid financial health.
| Metric | SIMOSilicon Motion Te… | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +14.8% | +28.4% |
| ROA (TTM)Return on assets | +10.0% | +13.5% |
| ROICReturn on invested capital | +12.4% | +14.9% |
| ROCEReturn on capital employed | +10.8% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | — | 0.80x |
| Net DebtTotal debt minus cash | -$202M | $49.0B |
| Cash & Equiv.Liquid assets | $202M | $16.2B |
| Total DebtShort + long-term debt | $0 | $65.1B |
| 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 $22,930 for SIMO. Over the past 12 months, SIMO leads with a +133.9% total return vs AVGO's +61.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs SIMO's 25.9% — a key indicator of consistent wealth creation.
| Metric | SIMOSilicon Motion Te… | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +38.4% | -8.1% |
| 1-Year ReturnPast 12 months | +133.9% | +61.4% |
| 3-Year ReturnCumulative with dividends | +99.7% | +448.6% |
| 5-Year ReturnCumulative with dividends | +129.3% | +572.4% |
| 10-Year ReturnCumulative with dividends | +322.8% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +25.9% | +76.4% |
Risk & Volatility
SIMO is the less volatile stock with a 1.52 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. SIMO currently trades 88.0% from its 52-week high vs AVGO's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SIMOSilicon Motion Te… | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.52x | 1.75x |
| 52-Week HighHighest price in past year | $146.85 | $414.61 |
| 52-Week LowLowest price in past year | $37.21 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +88.0% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 53.9 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 610K | 21.0M |
Analyst Outlook
Wall Street rates SIMO as "Buy" and AVGO as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs 10.3% for SIMO (target: $143). For income investors, SIMO offers the higher dividend yield at 6.19% vs AVGO's 0.72%.
| Metric | SIMOSilicon Motion Te… | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $142.50 | $443.72 |
| # AnalystsCovering analysts | 31 | 57 |
| Dividend YieldAnnual dividend ÷ price | +6.2% | +0.7% |
| Dividend StreakConsecutive years of raises | 2 | 15 |
| Dividend / ShareAnnual DPS | $8.00 | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +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 |
|---|---|---|---|
| Silicon Motion Tech… (SIMO) | 100 | 318.48 | +218.5% |
| Broadcom Inc. (AVGO) | 100 | 1,161.79 | +1061.8% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs Silicon Motion Tech… (SIMO)'s +129%. 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 |
|---|---|---|---|
| Silicon Motion Tech… (SIMO) | $556M | $886M | +59.2% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
Silicon Motion Technology Corporation's revenue grew from $556M (2016) to $886M (2025) — a 5.3% 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 |
|---|---|---|---|
| Silicon Motion Tech… (SIMO) | 19.9% | 13.8% | -30.6% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
Silicon Motion Technology Corporation's net margin went from 20% (2016) to 14% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Silicon Motion Tech… (SIMO) | 25.3 | 6.3 | -75.1% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
Silicon Motion Technology Corporation has traded in a 5x–39x P/E range over 9 years; current trailing P/E is ~9x. 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 |
|---|---|---|---|
| Silicon Motion Tech… (SIMO) | 3.12 | 14.6 | +367.9% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
Silicon Motion Technology Corporation's EPS grew from $3.12 (2016) to $14.60 (2025) — a 19% CAGR. Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
Silicon Motion Technology Corporation generated $6M FCF in 2025 (-96% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
SIMO vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SIMO or AVGO a better buy right now?
Silicon Motion Technology Corporation (SIMO) offers the better valuation at 8.9x trailing P/E (22.4x forward), making it the more compelling value choice. Analysts rate Silicon Motion Technology Corporation (SIMO) a "Buy" — based on 31 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 — SIMO or AVGO?
On trailing P/E, Silicon Motion Technology Corporation (SIMO) is the cheapest at 8.9x versus Broadcom Inc. at 67.0x. On forward P/E, Silicon Motion Technology Corporation is actually cheaper at 22.4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Silicon Motion Technology Corporation wins at 0.50x versus Broadcom Inc.'s 2.23x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SIMO or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +129.3% for Silicon Motion Technology Corporation (SIMO). 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 SIMO's +322.8%. 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 — SIMO or AVGO?
By beta (market sensitivity over 5 years), Silicon Motion Technology Corporation (SIMO) is the lower-risk stock at 1.52β versus Broadcom Inc.'s 1.75β — meaning AVGO is approximately 15% more volatile than SIMO relative to the S&P 500.
05Which has better profit margins — SIMO or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 13.8% for Silicon Motion Technology Corporation — 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 10.5% for SIMO. 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 SIMO 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, Silicon Motion Technology Corporation (SIMO) is the more undervalued stock at a PEG of 0.50x versus Broadcom Inc.'s 2.23x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Silicon Motion Technology Corporation (SIMO) trades at 22.4x forward P/E versus 31.1x for Broadcom Inc. — 8.7x 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 — SIMO or AVGO?
All stocks in this comparison pay dividends. Silicon Motion Technology Corporation (SIMO) offers the highest yield at 6.2%, versus 0.7% for Broadcom Inc. (AVGO).
08Is SIMO or AVGO better for a retirement portfolio?
For long-horizon retirement investors, Silicon Motion Technology Corporation (SIMO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (6.2% yield, +322.8% 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 (SIMO: +322.8%, 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 SIMO 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. In terms of investment character: SIMO is a small-cap deep-value stock; AVGO is a mega-cap quality compounder stock. 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.