Broadcom (AVGO) versus AU Optronics (AUO) Head to Head Analysis

Broadcom (NASDAQ: AVGO) and AU Optronics (NYSE:AUO) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Broadcom and AU Optronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadcom 41.37% 29.50% 13.75%
AU Optronics 8.28% 12.28% 6.20%

Earnings & Valuation

This table compares Broadcom and AU Optronics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadcom $17.64 billion 5.55 $1.69 billion $14.30 16.68
AU Optronics $11.51 billion 0.35 $1.40 billion $1.13 3.74

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

Risk and Volatility

Broadcom has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, AU Optronics has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Broadcom and AU Optronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadcom 0 2 31 1 2.97
AU Optronics 3 3 1 0 1.71

Broadcom presently has a consensus target price of $310.58, suggesting a potential upside of 30.23%. Given Broadcom’s stronger consensus rating and higher possible upside, research analysts clearly believe Broadcom is more favorable than AU Optronics.

Institutional & Insider Ownership

86.7% of Broadcom shares are owned by institutional investors. Comparatively, 6.5% of AU Optronics shares are owned by institutional investors. 3.3% of Broadcom shares are owned by insiders. Comparatively, 16.0% of AU Optronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Broadcom pays an annual dividend of $7.00 per share and has a dividend yield of 2.9%. AU Optronics does not pay a dividend. Broadcom pays out 49.0% of its earnings in the form of a dividend.

Summary

Broadcom beats AU Optronics on 15 of the 17 factors compared between the two stocks.

About Broadcom

Broadcom Limited designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. The company was formerly known as Avago Technologies Limited and changed its name to Broadcom Limited in February 2016. Broadcom Limited was founded in 2005 and is headquartered in Singapore.

About AU Optronics

AU Optronics Corp. researches, develops, produces, and sells thin film transistor liquid crystal displays and other flat panel displays. The company operates through two segments, Display and Solar. The Display segment designs, develops, manufactures, assembles, and markets flat panel displays for use in televisions (TVs), TV sets, and other related products; desktop monitors; mobile PCs, such as notebooks and tablets; mobile phones; and commercial and other applications, including displays for automobiles, industrial PCs, automated teller machines, point of sale terminals, pachinko machines, medical equipment, and others. This segment serves original equipment manufacturing service providers; and brand companies. The Solar segment manufactures and sells solar materials, including ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. This segment sells its ingot and solar wafer products primarily to solar cell manufacturers; and solar modules to installers, solar system integrators, property developers, and other value-added resellers. The company also engages in the renewable energy power generation; repairing and sale support of TFT-LCD modules, as well as sale support of solar-related products; injecting and stamping parts; manufacture and sale of molds, light guide plates, liquid crystal products, backlight modules, and related parts, as well as precision plastic and metal parts; IP related business; design, development and sales of software and hardware for health care industry; manufacture, assembly, and sale of automotive parts; manufacture and sale of motorized treadmills; and planning, design, and development of construction for environmental protection and related project management. It operates in the People's Republic of China, Taiwan, Japan, Singapore, and internationally. AU Optronics Corp. was founded in 1996 and is headquartered in Hsinchu, Taiwan.

Receive News & Ratings for Broadcom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Broadcom and related companies with MarketBeat.com's FREE daily email newsletter.




Leave a Reply