Comprehensive Stock Comparison
Compare Astera Labs, Inc. Common Stock (ALAB) 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 | ALAB | 115.1% revenue growth vs AVGO's 23.9% |
| Value | AVGO | Lower P/E (31.1x vs 48.2x) |
| Quality / Margins | AVGO | 36.2% net margin vs ALAB's 25.7% |
| Stability / Safety | AVGO | Beta 1.75 vs ALAB's 2.34 |
| Dividends | AVGO | 0.7% yield; 15-year raise streak; ALAB pays no meaningful dividend |
| Momentum (1Y) | AVGO | +61.4% vs ALAB's +59.8% |
| Efficiency (ROA) | ALAB | 14.3% ROA vs AVGO's 13.5%, ROIC 12.5% vs 14.9% |
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
Astera Labs designs semiconductor connectivity solutions that enable high-performance cloud and AI infrastructure. It generates revenue primarily from selling its portfolio of data, network, and memory connectivity products — including both hardware chips and supporting software — to cloud service providers and data center operators. The company's competitive advantage lies in its software-defined architecture that allows customers to scale AI infrastructure efficiently, addressing critical bottlenecks in data movement.
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 4 of 6 categories (Financial Metrics, Valuation Metrics). ALAB leads in 1 (Profitability & Efficiency).
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 74.9x ALAB's $853M. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to ALAB's 25.7%. On growth, ALAB holds the edge at +91.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ALABAstera Labs, Inc.… | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $853M | $63.9B |
| EBITDAEarnings before interest/tax | $180M | $34.2B |
| Net IncomeAfter-tax profit | $219M | $23.1B |
| Free Cash FlowCash after capex | $282M | $26.9B |
| Gross MarginGross profit ÷ Revenue | +75.7% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +20.3% | +39.9% |
| Net MarginNet income ÷ Revenue | +25.7% | +36.2% |
| FCF MarginFCF ÷ Revenue | +33.1% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +91.8% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +78.6% | +3.1% |
Valuation Metrics
At 67.0x trailing earnings, AVGO trades at a 31% valuation discount to ALAB's 97.4x P/E. On an enterprise value basis, AVGO's 44.1x EV/EBITDA is more attractive than ALAB's 111.3x.
| Metric | ALABAstera Labs, Inc.… | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $20.2B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $20.1B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | 97.40x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 48.23x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | — | 4.80x |
| EV / EBITDAEnterprise value multiple | 111.28x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 23.73x | 23.71x |
| Price / BookPrice ÷ Book value/share | 15.65x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 71.79x | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $16 for ALAB. On the Piotroski fundamental quality scale (0–9), ALAB scores 5/9 vs AVGO's 4/9, reflecting solid financial health.
| Metric | ALABAstera Labs, Inc.… | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +16.1% | +28.4% |
| ROA (TTM)Return on assets | +14.3% | +13.5% |
| ROICReturn on invested capital | +12.5% | +14.9% |
| ROCEReturn on capital employed | +14.7% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | — | 0.80x |
| Net DebtTotal debt minus cash | -$168M | $49.0B |
| Cash & Equiv.Liquid assets | $168M | $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 $19,157 for ALAB. Over the past 12 months, AVGO leads with a +61.4% total return vs ALAB's +59.8%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs ALAB's 24.2% — a key indicator of consistent wealth creation.
| Metric | ALABAstera Labs, Inc.… | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -33.8% | -8.1% |
| 1-Year ReturnPast 12 months | +59.8% | +61.4% |
| 3-Year ReturnCumulative with dividends | +91.6% | +448.6% |
| 5-Year ReturnCumulative with dividends | +91.6% | +572.4% |
| 10-Year ReturnCumulative with dividends | +91.6% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +24.2% | +76.4% |
Risk & Volatility
AVGO is the less volatile stock with a 1.75 beta — it tends to amplify market swings less than ALAB's 2.34 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 ALAB's 45.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ALABAstera Labs, Inc.… | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.34x | 1.75x |
| 52-Week HighHighest price in past year | $262.90 | $414.61 |
| 52-Week LowLowest price in past year | $47.13 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +45.2% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 38.2 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 4.4M | 21.0M |
Analyst Outlook
Wall Street rates ALAB as "Buy" and AVGO as "Buy". Consensus price targets imply 70.1% upside for ALAB (target: $202) vs 38.9% for AVGO (target: $444). AVGO is the only dividend payer here at 0.72% yield — a key consideration for income-focused portfolios.
| Metric | ALABAstera Labs, Inc.… | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $202.14 | $443.72 |
| # AnalystsCovering analysts | 15 | 57 |
| Dividend YieldAnnual dividend ÷ price | — | +0.7% |
| Dividend StreakConsecutive years of raises | — | 15 |
| Dividend / ShareAnnual DPS | — | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 24 | Feb 26 | Change |
|---|---|---|---|
| Astera Labs, Inc. C… (ALAB) | 100 | 245.75 | +145.8% |
| Broadcom Inc. (AVGO) | 100 | 245.21 | +145.2% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs Astera Labs, Inc. C… (ALAB)'s +92%. 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 |
|---|---|---|---|
| Astera Labs, Inc. C… (ALAB) | $80M | $853M | +967.4% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
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 |
|---|---|---|---|
| Astera Labs, Inc. C… (ALAB) | -73.0% | 25.7% | +135.2% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
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 |
|---|---|---|---|
| Astera Labs, Inc. C… (ALAB) | -0.45 | 1.22 | +371.1% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
Astera Labs, Inc. Common Stock generated $282M FCF in 2025 (+808% vs 2022). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
ALAB vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ALAB 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 Astera Labs, Inc. Common Stock (ALAB) a "Buy" — based on 15 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 — ALAB or AVGO?
On trailing P/E, Broadcom Inc. (AVGO) is the cheapest at 67.0x versus Astera Labs, Inc. Common Stock at 97.4x. On forward P/E, Broadcom Inc. is actually cheaper at 31.1x.
03Which is the better long-term investment — ALAB or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +91.6% for Astera Labs, Inc. Common Stock (ALAB). 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 ALAB's +91.6%. 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 — ALAB or AVGO?
By beta (market sensitivity over 5 years), Broadcom Inc. (AVGO) is the lower-risk stock at 1.75β versus Astera Labs, Inc. Common Stock's 2.34β — meaning ALAB is approximately 33% more volatile than AVGO relative to the S&P 500.
05Which has better profit margins — ALAB or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 25.7% for Astera Labs, Inc. Common Stock — 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 20.3% for ALAB. At the gross margin level — before operating expenses — ALAB leads at 75.7%, 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 ALAB or AVGO more undervalued right now?
On forward earnings alone, Broadcom Inc. (AVGO) trades at 31.1x forward P/E versus 48.2x for Astera Labs, Inc. Common Stock — 17.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALAB: 70.1% to $202.14.
07Which pays a better dividend — ALAB or AVGO?
In this comparison, AVGO (0.7% yield) pays a dividend. ALAB does not pay a meaningful dividend and should not be held primarily for income.
08Is ALAB 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). Astera Labs, Inc. Common Stock (ALAB) carries a higher beta of 2.34 — 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%, ALAB: +91.6%), 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 ALAB 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 ALAB 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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