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 17y
AMAT +4130.1%AVGO +23484.6%AVGO compounded faster
Log scale — wide-divergence pair
101001k10k100kStart $10020122015201820212024$4,230$23,585
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 11

It depends on what you're optimizing for:

ValueAMAT(lower P/E)
GrowthAVGO(faster 5Y revenue CAGR)
IncomeAVGO(higher dividend yield)
QualityAMAT(higher ROIC)

Valuation

MetricAMATAVGO
P/E ratio53.3163.68
Forward P/E46.3819.65
P/S ratio15.6224.69
P/B ratio18.9621.24
PEG ratio76.900.26
EV / EBITDA41.8945.41
FCF yield1.32%1.76%

Profitability

MetricAMATAVGO
Gross margin48.96%66.96%
Operating margin29.51%43.66%
Net margin29.31%38.85%
ROE35.58%33.43%
ROIC21.96%16.36%

Dividends

MetricAMATAVGO
Dividend yield0.34%0.65%
Payout ratio21.93%50.51%

Growth (annualized)

MetricAMATAVGO
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.

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.