Broadcom Limited (AVGO) & Applied Micro Circuits (AMCC) Financial Comparison

Broadcom Limited (NASDAQ: AVGO) and Applied Micro Circuits (NASDAQ:AMCC) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Insider and Institutional Ownership

90.0% of Broadcom Limited shares are held by institutional investors. Comparatively, 73.3% of Applied Micro Circuits shares are held by institutional investors. 3.6% of Broadcom Limited shares are held by insiders. Comparatively, 12.4% of Applied Micro Circuits shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Broadcom Limited and Applied Micro Circuits’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Broadcom Limited $16.93 billion 6.04 $6.96 billion $1.17 214.15
Applied Micro Circuits N/A N/A N/A ($0.38) -22.24

Broadcom Limited has higher revenue and earnings than Applied Micro Circuits. Applied Micro Circuits is trading at a lower price-to-earnings ratio than Broadcom Limited, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Broadcom Limited has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Applied Micro Circuits has a beta of 1.81, suggesting that its stock price is 81% 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%. Applied Micro Circuits does not pay a dividend. 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.

Profitability

This table compares Broadcom Limited and Applied Micro Circuits’ 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%
Applied Micro Circuits -11.11% -16.63% -13.04%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Broadcom Limited and Applied Micro Circuits, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom Limited 0 1 29 1 3.00
Applied Micro Circuits 0 5 0 0 2.00

Broadcom Limited presently has a consensus target price of $275.27, suggesting a potential upside of 9.87%. Applied Micro Circuits has a consensus target price of $8.00, suggesting a potential downside of 5.33%. Given Broadcom Limited’s stronger consensus rating and higher probable upside, equities analysts clearly believe Broadcom Limited is more favorable than Applied Micro Circuits.

Summary

Broadcom Limited beats Applied Micro Circuits on 11 of the 14 factors compared between the two stocks.

Broadcom Limited Company Profile

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.

Applied Micro Circuits Company Profile

Applied Micro Circuits Corporation (AMCC) provides silicon solutions for cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. The Company’s products serve Computing and Connectivity markets. Its Computing products include the X-Gene family of server processors, based on the ARMv8 64-bit Instruction Set Architecture (ISA), which target mainstream cloud and data center infrastructure, including hyperscale, telco, enterprise and high performance computing. It also offers embedded computing products, which include HeliX family of processors, based on the ARM 64-bit ISA and its PowerPC products, based on Power Architecture. Its embedded Computing products are deployed in various applications, including networking and telecom, enterprise storage and industrial applications. The Connectivity business includes X-Weave family of products for service providers and public cloud, private cloud and enterprise data centers.

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