Comprehensive Stock Comparison
Compare Broadcom Inc. (AVGO) vs Analog Devices, Inc. (ADI) 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 ADI's 16.9% |
| Value | AVGO | Lower P/E (31.1x vs 31.5x), PEG 2.23 vs 4.62 |
| Quality / Margins | AVGO | 36.2% net margin vs ADI's 23.0% |
| Stability / Safety | ADI | Beta 1.55 vs AVGO's 1.75, lower leverage |
| Dividends | ADI | 1.1% yield, 22-year raise streak, vs AVGO's 0.7% |
| Momentum (1Y) | AVGO | +61.4% vs ADI's +56.4% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs ADI's 5.6%, ROIC 14.9% vs 5.4% |
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
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.
Analog Devices is a semiconductor company that designs and manufactures analog, mixed-signal, and digital signal processing integrated circuits for industrial, automotive, communications, and consumer markets. It generates revenue primarily through sales of data converters (~30%), power management ICs (~25%), amplifiers (~15%), and RF/microwave components (~15%) to industrial and automotive customers. The company's moat lies in its deep expertise in high-performance analog design—a difficult-to-master discipline—and its extensive portfolio of precision components that are deeply embedded in mission-critical systems.
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
ADI leads in 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). AVGO leads in 2 (Financial Metrics, Total Returns).
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 5.4x ADI's $11.8B. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to ADI's 23.0%. On growth, ADI holds the edge at +30.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | AVGOBroadcom Inc. | ADIAnalog Devices, I… |
|---|---|---|
| RevenueTrailing 12 months | $63.9B | $11.8B |
| EBITDAEarnings before interest/tax | $34.2B | $5.4B |
| Net IncomeAfter-tax profit | $23.1B | $2.7B |
| Free Cash FlowCash after capex | $26.9B | $4.6B |
| Gross MarginGross profit ÷ Revenue | +67.8% | +62.8% |
| Operating MarginEBIT ÷ Revenue | +39.9% | +29.2% |
| Net MarginNet income ÷ Revenue | +36.2% | +23.0% |
| FCF MarginFCF ÷ Revenue | +42.1% | +38.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.0% | +30.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.1% | +116.7% |
Valuation Metrics
At 67.0x trailing earnings, AVGO trades at a 14% valuation discount to ADI's 78.0x P/E. Adjusting for growth (PEG ratio), AVGO offers better value at 4.80x vs ADI's 11.45x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | AVGOBroadcom Inc. | ADIAnalog Devices, I… |
|---|---|---|
| Market CapShares × price | $1.52T | $173.7B |
| Enterprise ValueMkt cap + debt − cash | $1.56T | $179.9B |
| Trailing P/EPrice ÷ TTM EPS | 66.99x | 78.02x |
| Forward P/EPrice ÷ next-FY EPS est. | 31.10x | 31.50x |
| PEG RatioP/E ÷ EPS growth rate | 4.80x | 11.45x |
| EV / EBITDAEnterprise value multiple | 44.06x | 36.47x |
| Price / SalesMarket cap ÷ Revenue | 23.71x | 15.76x |
| Price / BookPrice ÷ Book value/share | 19.08x | 5.23x |
| Price / FCFMarket cap ÷ FCF | 56.29x | 40.60x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $8 for ADI. ADI carries lower financial leverage with a 0.26x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), ADI scores 8/9 vs AVGO's 4/9, reflecting strong financial health.
| Metric | AVGOBroadcom Inc. | ADIAnalog Devices, I… |
|---|---|---|
| ROE (TTM)Return on equity | +28.4% | +8.0% |
| ROA (TTM)Return on assets | +13.5% | +5.6% |
| ROICReturn on invested capital | +14.9% | +5.4% |
| ROCEReturn on capital employed | +16.9% | +6.5% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 8 |
| Debt / EquityFinancial leverage | 0.80x | 0.26x |
| Net DebtTotal debt minus cash | $49.0B | $6.2B |
| Cash & Equiv.Liquid assets | $16.2B | $2.5B |
| Total DebtShort + long-term debt | $65.1B | $8.7B |
| Interest CoverageEBIT ÷ Interest expense | 8.09x | 10.80x |
Total Returns (with DRIP)
A $10,000 investment in AVGO five years ago would be worth $67,244 today (with dividends reinvested), compared to $23,455 for ADI. Over the past 12 months, AVGO leads with a +61.4% total return vs ADI's +56.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs ADI's 25.9% — a key indicator of consistent wealth creation.
| Metric | AVGOBroadcom Inc. | ADIAnalog Devices, I… |
|---|---|---|
| YTD ReturnYear-to-date | -8.1% | +30.0% |
| 1-Year ReturnPast 12 months | +61.4% | +56.4% |
| 3-Year ReturnCumulative with dividends | +448.6% | +99.5% |
| 5-Year ReturnCumulative with dividends | +572.4% | +134.6% |
| 10-Year ReturnCumulative with dividends | +2389.2% | +621.4% |
| CAGR (3Y)Annualised 3-year return | +76.4% | +25.9% |
Risk & Volatility
ADI is the less volatile stock with a 1.55 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. ADI currently trades 98.0% 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. | ADIAnalog Devices, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.75x | 1.55x |
| 52-Week HighHighest price in past year | $414.61 | $363.20 |
| 52-Week LowLowest price in past year | $138.10 | $158.65 |
| % of 52W HighCurrent price vs 52-week peak | +77.1% | +98.0% |
| RSI (14)Momentum oscillator 0–100 | 44.2 | 71.0 |
| Avg Volume (50D)Average daily shares traded | 21.0M | 3.1M |
Analyst Outlook
Wall Street rates AVGO as "Buy" and ADI as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs 5.2% for ADI (target: $374). For income investors, ADI offers the higher dividend yield at 1.09% vs AVGO's 0.72%.
| Metric | AVGOBroadcom Inc. | ADIAnalog Devices, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $443.72 | $374.42 |
| # AnalystsCovering analysts | 57 | 54 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +1.1% |
| Dividend StreakConsecutive years of raises | 15 | 22 |
| Dividend / ShareAnnual DPS | $2.30 | $3.87 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +1.2% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | 100 | 1,214.64 | +1114.6% |
| Analog Devices, Inc. (ADI) | 100 | 290.56 | +190.6% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs Analog Devices, Inc. (ADI)'s +135%. 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% |
| Analog Devices, Inc. (ADI) | $3.4B | $11.0B | +222.1% |
Broadcom Inc.'s revenue grew from $13.2B (2016) to $63.9B (2025) — a 19.1% CAGR. Analog Devices, Inc.'s revenue grew from $3.4B (2016) to $11.0B (2025) — a 13.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
| Analog Devices, Inc. (ADI) | 25.2% | 20.6% | -18.3% |
Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025). Analog Devices, Inc.'s net margin went from 25% (2016) to 21% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
| Analog Devices, Inc. (ADI) | 38.9 | 59.5 | +53.0% |
Broadcom Inc. has traded in a 9x–189x P/E range over 9 years; current trailing P/E is ~67x. Analog Devices, Inc. has traded in a 22x–65x P/E range over 9 years; current trailing P/E is ~78x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
| Analog Devices, Inc. (ADI) | 2.76 | 4.56 | +65.2% |
Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025). Analog Devices, Inc.'s EPS grew from $2.76 (2016) to $4.56 (2025) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021). Analog Devices, Inc. generated $4B FCF in 2025 (+79% vs 2021).
AVGO vs ADI: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AVGO or ADI 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 has the better valuation — AVGO or ADI?
On trailing P/E, Broadcom Inc. (AVGO) is the cheapest at 67.0x versus Analog Devices, Inc. at 78.0x. On forward P/E, Broadcom Inc. is actually cheaper at 31.1x. 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 Analog Devices, Inc.'s 4.62x.
03Which is the better long-term investment — AVGO or ADI?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +134.6% for Analog Devices, Inc. (ADI). 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 ADI's +621.4%. 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 — AVGO or ADI?
By beta (market sensitivity over 5 years), Analog Devices, Inc. (ADI) is the lower-risk stock at 1.55β versus Broadcom Inc.'s 1.75β — meaning AVGO is approximately 13% more volatile than ADI relative to the S&P 500. On balance sheet safety, Analog Devices, Inc. (ADI) carries a lower debt/equity ratio of 26% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — AVGO or ADI?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 20.6% for Analog Devices, Inc. — 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 26.6% for ADI. 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 ADI 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 Analog Devices, Inc.'s 4.62x. 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 31.5x for Analog Devices, Inc. — 0.4x 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 — AVGO or ADI?
All stocks in this comparison pay dividends. Analog Devices, Inc. (ADI) offers the highest yield at 1.1%, versus 0.7% for Broadcom Inc. (AVGO).
08Is AVGO or ADI better for a retirement portfolio?
For long-horizon retirement investors, Analog Devices, Inc. (ADI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.1% yield, +621.4% 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 (ADI: +621.4%, 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 AVGO and ADI?
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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