Broadcom Limited (NASDAQ: AVGO) is one of 105 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare Broadcom Limited to similar companies based on the strength of its risk, institutional ownership, valuation, analyst recommendations, dividends, profitability and earnings.

Earnings and Valuation

This table compares Broadcom Limited and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Broadcom Limited $16.93 billion $6.96 billion 213.52
Broadcom Limited Competitors $4.52 billion $1.30 billion 85.46

Broadcom Limited has higher revenue and earnings than its peers. Broadcom Limited is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

89.7% of Broadcom Limited shares are held by institutional investors. Comparatively, 68.2% of shares of all “Semiconductors” companies are held by institutional investors. 3.6% of Broadcom Limited shares are held by insiders. Comparatively, 6.1% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Broadcom Limited has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Broadcom Limited’s peers have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.

Dividends

Broadcom Limited pays an annual dividend of $4.08 per share and has a dividend yield of 1.6%. Broadcom Limited pays out 348.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors” companies pay a dividend yield of 1.5% and pay out 58.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for Broadcom Limited and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom Limited 0 1 29 1 3.00
Broadcom Limited Competitors 1144 5250 8788 407 2.54

Broadcom Limited currently has a consensus target price of $275.27, suggesting a potential upside of 10.19%. As a group, “Semiconductors” companies have a potential upside of 12.68%. Given Broadcom Limited’s peers higher probable upside, analysts clearly believe Broadcom Limited has less favorable growth aspects than its peers.

Profitability

This table compares Broadcom Limited and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadcom Limited 3.12% 26.82% 11.96%
Broadcom Limited Competitors -47.46% -0.19% -0.20%

Summary

Broadcom Limited beats its peers on 11 of the 15 factors compared.

About Broadcom Limited

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. It offers a range of products that are used in end-products, such as enterprise and data center networking, home connectivity, set-top boxes (STBs), broadband access, telecommunication equipment, smartphones, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Its product portfolio ranges from discrete devices to complex sub-systems that include multiple device types, and also includes firmware for interfacing between analog and digital systems. Its products include mechanical hardware that interfaces with optoelectronic or capacitive sensors.

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