AVGO vs ADI

For growth investors, Broadcom Inc.

(AVGO) is the stronger pick with 23. 9% revenue growth year-over-year, versus 16. 9% for Analog Devices, Inc. (ADI). Analog Devices, Inc. (ADI) offers the better valuation at 88. 8x trailing P/E (35. 4x forward), making it the more compelling value choice. Analysts rate Broadcom Inc. (AVGO) a "Buy" — based on 58 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.

On trailing P/E, Analog Devices, Inc.

(ADI) is the cheapest at 88. 8x versus Broadcom Inc. at 89. 6x. On forward P/E, Analog Devices, Inc. is actually cheaper at 35. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Broadcom Inc. wins at 0. 76x versus Analog Devices, Inc. 's 5. 20x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Broadcom Inc.

(AVGO) delivered a total return of +885. 6%, compared to +174. 2% for Analog Devices, Inc. (ADI). Over 10 years, the gap is even starker: AVGO returned +30. 0% versus ADI's +676. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Analog Devices, Inc.

(ADI) is the lower-risk stock at 1. 44β versus Broadcom Inc. 's 1. 96β — meaning AVGO is approximately 36% 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.

By revenue growth (latest reported year), Broadcom Inc.

(AVGO) is pulling ahead at 23. 9% versus 16. 9% for Analog Devices, Inc. (ADI). On earnings-per-share growth, the picture is similar: Broadcom Inc. grew EPS 287. 8% year-over-year, compared to 39. 0% for Analog Devices, Inc.. Over a 3-year CAGR, AVGO leads at 24. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

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.

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 0. 76x versus Analog Devices, Inc. 's 5. 20x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Analog Devices, Inc. (ADI) trades at 35. 4x forward P/E versus 37. 8x for Broadcom Inc. — 2. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 3. 8% to $443. 72.

All stocks in this comparison pay dividends.

Analog Devices, Inc. (ADI) offers the highest yield at 1. 0%, versus 0. 5% for Broadcom Inc. (AVGO).

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. 0% yield, +676. 4% 10Y return). Broadcom Inc. (AVGO) carries a higher beta of 1. 96 — 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: +676. 4%, AVGO: +30. 0%), 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.

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.