Comprehensive Stock Comparison
Compare United Microelectronics Corporation (UMC) 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 | AVGO | 23.9% revenue growth vs UMC's 2.3% |
| Value | UMC | Lower P/E (17.2x vs 31.1x), PEG 0.41 vs 2.23 |
| Quality / Margins | AVGO | 36.2% net margin vs UMC's 20.5% |
| Stability / Safety | UMC | Beta 0.75 vs AVGO's 1.75, lower leverage |
| Dividends | UMC | 4.4% yield, vs AVGO's 0.7% |
| Momentum (1Y) | UMC | +69.4% vs AVGO's +61.4% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs UMC's 8.4%, ROIC 14.9% vs 9.7% |
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
United Microelectronics Corporation is a pure-play semiconductor wafer foundry that manufactures integrated circuits for other companies rather than designing its own chips. It generates revenue primarily from wafer fabrication services — accounting for the vast majority of sales — with additional income from mask tooling, design support, and testing services. Its competitive advantage lies in specialized manufacturing expertise in mature and specialty process technologies — particularly in areas like RFSOI, embedded memory, and high-voltage processes — where it maintains strong customer relationships and technical leadership.
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). UMC leads in 2 (Valuation Metrics, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
UMC is the larger business by revenue, generating $238.8B annually — 3.7x AVGO's $63.9B. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to UMC's 20.5%. On growth, AVGO holds the edge at +22.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | UMCUnited Microelect… | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $238.8B | $63.9B |
| EBITDAEarnings before interest/tax | $105.7B | $34.2B |
| Net IncomeAfter-tax profit | $48.9B | $23.1B |
| Free Cash FlowCash after capex | $50.1B | $26.9B |
| Gross MarginGross profit ÷ Revenue | +29.8% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +19.0% | +39.9% |
| Net MarginNet income ÷ Revenue | +20.5% | +36.2% |
| FCF MarginFCF ÷ Revenue | +21.0% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -2.2% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.5% | +3.1% |
Valuation Metrics
At 19.6x trailing earnings, UMC trades at a 71% valuation discount to AVGO's 67.0x P/E. Adjusting for growth (PEG ratio), UMC offers better value at 0.47x vs AVGO's 4.80x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | UMCUnited Microelect… | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $26.3B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $25.3B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | 19.63x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 17.24x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | 0.47x | 4.80x |
| EV / EBITDAEnterprise value multiple | 7.66x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 3.47x | 23.71x |
| Price / BookPrice ÷ Book value/share | 2.16x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 15.75x | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $13 for UMC. UMC carries lower financial leverage with a 0.21x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), UMC scores 5/9 vs AVGO's 4/9, reflecting solid financial health.
| Metric | UMCUnited Microelect… | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +12.9% | +28.4% |
| ROA (TTM)Return on assets | +8.4% | +13.5% |
| ROICReturn on invested capital | +9.7% | +14.9% |
| ROCEReturn on capital employed | +9.0% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.21x | 0.80x |
| Net DebtTotal debt minus cash | -$32.3B | $49.0B |
| Cash & Equiv.Liquid assets | $110.7B | $16.2B |
| Total DebtShort + long-term debt | $78.3B | $65.1B |
| Interest CoverageEBIT ÷ Interest expense | 43.56x | 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 $12,699 for UMC. Over the past 12 months, UMC leads with a +69.4% total return vs AVGO's +61.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs UMC's 13.8% — a key indicator of consistent wealth creation.
| Metric | UMCUnited Microelect… | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +33.2% | -8.1% |
| 1-Year ReturnPast 12 months | +69.4% | +61.4% |
| 3-Year ReturnCumulative with dividends | +47.3% | +448.6% |
| 5-Year ReturnCumulative with dividends | +27.0% | +572.4% |
| 10-Year ReturnCumulative with dividends | +542.2% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +13.8% | +76.4% |
Risk & Volatility
UMC is the less volatile stock with a 0.75 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. UMC currently trades 82.3% from its 52-week high vs AVGO's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | UMCUnited Microelect… | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.75x | 1.75x |
| 52-Week HighHighest price in past year | $12.68 | $414.61 |
| 52-Week LowLowest price in past year | $5.71 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +82.3% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 52.4 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 9.7M | 21.0M |
Analyst Outlook
Wall Street rates UMC as "Hold" and AVGO as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs -17.6% for UMC (target: $9). For income investors, UMC offers the higher dividend yield at 4.40% vs AVGO's 0.72%.
| Metric | UMCUnited Microelect… | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $8.60 | $443.72 |
| # AnalystsCovering analysts | 15 | 57 |
| Dividend YieldAnnual dividend ÷ price | +4.4% | +0.7% |
| Dividend StreakConsecutive years of raises | 0 | 15 |
| Dividend / ShareAnnual DPS | $14.41 | $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 | Apr 20 | Feb 26 | Change |
|---|---|---|---|
| United Microelectro… (UMC) | 100 | 464.81 | +364.8% |
| Broadcom Inc. (AVGO) | 81.52 | 1,207.11 | +1380.8% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs United Microelectro… (UMC)'s +27%. 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 |
|---|---|---|---|
| United Microelectro… (UMC) | $147.9B | $237.6B | +60.6% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
United Microelectronics Corporation's revenue grew from $147.9B (2016) to $237.6B (2025) — a 5.4% 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 |
|---|---|---|---|
| United Microelectro… (UMC) | 5.8% | 17.6% | +201.2% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
United Microelectronics Corporation's net margin went from 6% (2016) to 18% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| United Microelectro… (UMC) | 0.6 | 0.5 | -16.7% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
United Microelectronics Corporation has traded in a 0x–1x P/E range over 9 years; current trailing P/E is ~20x. 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 |
|---|---|---|---|
| United Microelectro… (UMC) | 3.35 | 16.7 | +398.5% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
United Microelectronics Corporation's EPS grew from $3.35 (2016) to $16.70 (2025) — a 20% CAGR. Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
United Microelectronics Corporation generated $52B FCF in 2025 (+30% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
UMC vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is UMC or AVGO a better buy right now?
United Microelectronics Corporation (UMC) offers the better valuation at 19.6x trailing P/E (17.2x 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 — UMC or AVGO?
On trailing P/E, United Microelectronics Corporation (UMC) is the cheapest at 19.6x versus Broadcom Inc. at 67.0x. On forward P/E, United Microelectronics Corporation is actually cheaper at 17.2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: United Microelectronics Corporation wins at 0.41x 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 — UMC or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +27.0% for United Microelectronics Corporation (UMC). 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 UMC's +542.2%. 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 — UMC or AVGO?
By beta (market sensitivity over 5 years), United Microelectronics Corporation (UMC) is the lower-risk stock at 0.75β versus Broadcom Inc.'s 1.75β — meaning AVGO is approximately 133% more volatile than UMC relative to the S&P 500. On balance sheet safety, United Microelectronics Corporation (UMC) carries a lower debt/equity ratio of 21% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — UMC or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 17.6% for United Microelectronics 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 18.5% for UMC. 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 UMC 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, United Microelectronics Corporation (UMC) is the more undervalued stock at a PEG of 0.41x versus Broadcom Inc.'s 2.23x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, United Microelectronics Corporation (UMC) trades at 17.2x forward P/E versus 31.1x for Broadcom Inc. — 13.9x 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 — UMC or AVGO?
All stocks in this comparison pay dividends. United Microelectronics Corporation (UMC) offers the highest yield at 4.4%, versus 0.7% for Broadcom Inc. (AVGO).
08Is UMC or AVGO better for a retirement portfolio?
For long-horizon retirement investors, United Microelectronics Corporation (UMC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.75), 4.4% yield, +542.2% 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 (UMC: +542.2%, 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 UMC 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: UMC is a mid-cap income-oriented 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.
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