Broadcom Inc (AVGO) vs Microsoft Corporation (MSFT)

A side-by-side look at how these two compare on valuation, profitability and shareholder returns.

Broadcom vs Microsoft at a glance

Both companies operate in the Information Technology sector, so these figures are broadly like-for-like.

MetricAVGOMSFT
Market cap$1.80T$3.83T
Price$368.79$513.53
P/E ratio (TTM)77.820.79
P/B ratio (MRQ)22.136.28
P/S ratio (TTM)28.168.38
Revenue growth (1Y)23.87%17.79%
Return on equity (TTM)28.45%30.23%
Return on invested capital (TTM)17.71%27.12%
Gross margin (TTM)67.09%67.94%
Net margin (TTM)36.57%40.31%
Dividend yield (TTM)0.70%0.71%

How they differ

Microsoft is the larger company at $3.83T versus $1.80T — about 2.1x the size.

On trailing earnings, Microsoft is the cheaper of the two at 20.79 against 77.8 for Broadcom.

On sales, Microsoft is the cheaper of the two at 8.38 against 28.16 for Broadcom.

Broadcom leads on revenue growth over the past year, 23.87% against 17.79%.

Microsoft leads on return on invested capital, 27.12% against 17.71%.

Microsoft leads on gross margin, 67.94% against 67.09%.

Microsoft offers the higher yield at 0.71% against 0.70%.

Go deeper

Ratios describe the past. Whether either is worth owning depends on what you pay today.

Related comparisons

Other matchups involving Broadcom or Microsoft.

Explore the full comparison