ESI vs AVGO

For growth investors, Broadcom Inc.

(AVGO) is the stronger pick with 23. 9% revenue growth year-over-year, versus 3. 8% for Element Solutions Inc (ESI). Element Solutions Inc (ESI) offers the better valuation at 56. 0x trailing P/E (25. 1x forward), making it the more compelling value choice. Analysts rate Element Solutions Inc (ESI) a "Buy" — based on 35 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, Element Solutions Inc (ESI) is the cheapest at 56.

0x versus Broadcom Inc. at 89. 2x. On forward P/E, Element Solutions Inc is actually cheaper at 25. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Broadcom Inc. wins at 0. 75x versus Element Solutions Inc's 1. 18x — 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 +870. 6%, compared to +103. 8% for Element Solutions Inc (ESI). Over 10 years, the gap is even starker: AVGO returned +30. 0% versus ESI's +421. 6%. 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), Broadcom Inc.

(AVGO) is the lower-risk stock at 1. 96β versus Element Solutions Inc's 2. 01β — meaning ESI is approximately 2% more volatile than AVGO relative to the S&P 500. On balance sheet safety, Element Solutions Inc (ESI) carries a lower debt/equity ratio of 60% 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 3. 8% for Element Solutions Inc (ESI). On earnings-per-share growth, the picture is similar: Broadcom Inc. grew EPS 287. 8% year-over-year, compared to -21. 8% for Element Solutions 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 7. 5% for Element Solutions 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 13. 4% for ESI. 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. 75x versus Element Solutions Inc's 1. 18x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Element Solutions Inc (ESI) trades at 25. 1x forward P/E versus 37. 6x for Broadcom Inc. — 12. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 4. 3% to $443. 72.

All stocks in this comparison pay dividends.

Element Solutions Inc (ESI) offers the highest yield at 0. 7%, versus 0. 5% for Broadcom Inc. (AVGO).

For long-horizon retirement investors, Element Solutions Inc (ESI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.

7% yield, +421. 6% 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 (ESI: +421. 6%, 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.

These companies operate in different sectors (ESI (Basic Materials) and AVGO (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ESI is a mid-cap quality compounder stock; AVGO is a mega-cap high-growth 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.