Applied Materials, Inc. (AMAT) vs Broadcom Inc. (AVGO)
AVGO leads on 11 of 17 compared metrics, though AMAT is the cheaper stock.
A side-by-side comparison of Applied Materials, Inc. and Broadcom Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
Total return — AMAT vs AVGO
growth of $100 · last 17yAMAT +4130.1%AVGO +23484.6%AVGO compounded faster
Log scale — wide-divergence pair
AMAT AVGO
AMAT vs AVGO: by the numbers
- •AVGO is the larger company ($1.82T vs $450.37B market cap).
- •AMAT trades at the lower earnings multiple (53.31 vs 63.68 P/E).
- •AVGO converts more revenue to profit (38.85% vs 29.31% net margin).
- •AVGO grew revenue faster over the past five years (24.17% vs 9.33% CAGR).
- •AVGO pays the higher dividend yield (0.65% vs 0.34%).
Which is better, AMAT or AVGO?
Metric tally: AMAT 6 · AVGO 11It depends on what you're optimizing for:
ValueAMAT(lower P/E)
GrowthAVGO(faster 5Y revenue CAGR)
IncomeAVGO(higher dividend yield)
QualityAMAT(higher ROIC)
Valuation
| Metric | AMAT | AVGO |
|---|---|---|
| P/E ratio | 53.31● | 63.68 |
| Forward P/E | 46.38 | 19.65● |
| P/S ratio | 15.62● | 24.69 |
| P/B ratio | 18.96● | 21.24 |
| PEG ratio | 76.90 | 0.26● |
| EV / EBITDA | 41.89● | 45.41 |
| FCF yield | 1.32% | 1.76%● |
Profitability
| Metric | AMAT | AVGO |
|---|---|---|
| Gross margin | 48.96% | 66.96%● |
| Operating margin | 29.51% | 43.66%● |
| Net margin | 29.31% | 38.85%● |
| ROE | 35.58%● | 33.43% |
| ROIC | 21.96%● | 16.36% |
Dividends
| Metric | AMAT | AVGO |
|---|---|---|
| Dividend yield | 0.34% | 0.65%● |
| Payout ratio | 21.93% | 50.51% |
Growth (annualized)
| Metric | AMAT | AVGO |
|---|---|---|
| Revenue CAGR (5Y) | 9.33% | 24.17%● |
| EPS CAGR (5Y) | 17.13% | 49.36%● |
| FCF CAGR (5Y) | 9.02% | 20.74%● |
| Total return CAGR (5Y) | 34.01% | 55.05%● |
Frequently asked
- Which is better, AMAT or AVGO?
- It depends on your goal. value: AMAT (lower P/E); growth: AVGO (faster 5Y revenue CAGR); income: AVGO (higher dividend yield); quality: AMAT (higher ROIC). Across all compared metrics, AVGO leads 11 to 6.
- Is AMAT or AVGO cheaper?
- On trailing earnings, AMAT is cheaper: AMAT trades at a 53.31 P/E and AVGO at 63.68.
- Which has grown faster, AMAT or AVGO?
- Over the past five years, AVGO grew revenue faster — AMAT at a 9.33% CAGR versus AVGO at 24.17%.
- Does AMAT or AVGO pay a bigger dividend?
- AMAT yields 0.34% and AVGO yields 0.65% based on trailing dividends and the latest price.
- Is AMAT or AVGO more profitable?
- AVGO runs the higher net margin — AMAT at 29.31% versus AVGO at 38.85%.
- Which has been the better investment, AMAT or AVGO?
- Over the past 10-year, AVGO delivered the higher annualized total return — AMAT at 38.64% versus AVGO at 40.78%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Applied Materials P/E ratioBroadcom P/E ratioApplied Materials dividend yieldBroadcom dividend yieldApplied Materials ROEBroadcom ROEApplied Materials operating marginBroadcom operating marginApplied Materials revenue growthBroadcom revenue growthApplied Materials free cash flowBroadcom free cash flow
Applied Materials & Broadcom appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 14, 2026.