Broadcom Inc. (AVGO) vs Microsoft Corporation (MSFT)
MSFT leads on 8 of 15 compared metrics.
A side-by-side comparison of Broadcom Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
Total return — AVGO vs MSFT
growth of $100 · last 17yAVGO +23197.0%MSFT +1558.5%AVGO compounded faster
Log scale — wide-divergence pair
AVGO MSFT
AVGO vs MSFT: by the numbers
- •MSFT is the larger company ($2.90T vs $1.82T market cap).
- •MSFT trades at the lower earnings multiple (23.26 vs 63.68 P/E).
- •MSFT converts more revenue to profit (39.34% vs 38.85% net margin).
- •AVGO grew revenue faster over the past five years (24.17% vs 14.75% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.65%).
Which is better, AVGO or MSFT?
Metric tally: AVGO 7 · MSFT 8It depends on what you're optimizing for:
ValueMSFT(lower P/E)
GrowthAVGO(faster 5Y revenue CAGR)
IncomeMSFT(higher dividend yield)
QualityMSFT(higher ROIC)
Valuation
| Metric | AVGO | MSFT |
|---|---|---|
| P/E ratio | 63.68 | 23.26● |
| Forward P/E | 19.64● | 20.11 |
| P/S ratio | 24.69 | 9.14● |
| P/B ratio | 21.24 | 7.02● |
| PEG ratio | 0.26● | 2.34 |
| EV / EBITDA | 45.41 | 14.60● |
| FCF yield | 1.76% | 2.51%● |
Profitability
| Metric | AVGO | MSFT |
|---|---|---|
| Gross margin | 66.96% | 68.31% |
| Operating margin | 43.66% | 46.80%● |
| Net margin | 38.85% | 39.34% |
| ROE | 33.43%● | 30.22% |
| ROIC | 16.36% | 21.63%● |
Dividends
| Metric | AVGO | MSFT |
|---|---|---|
| Dividend yield | 0.65% | 0.91%● |
| Payout ratio | 50.51% | 25.99% |
Growth (annualized)
| Metric | AVGO | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 24.17%● | 14.75% |
| EPS CAGR (5Y) | 49.36%● | 18.68% |
| FCF CAGR (5Y) | 20.74%● | 6.27% |
| Total return CAGR (5Y) | 55.05%● | 9.56% |
Frequently asked
- Which is better, AVGO or MSFT?
- It depends on your goal. value: MSFT (lower P/E); growth: AVGO (faster 5Y revenue CAGR); income: MSFT (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 8 to 7.
- Is AVGO or MSFT cheaper?
- On trailing earnings, MSFT is cheaper: AVGO trades at a 63.68 P/E and MSFT at 23.26.
- Which has grown faster, AVGO or MSFT?
- Over the past five years, AVGO grew revenue faster — AVGO at a 24.17% CAGR versus MSFT at 14.75%.
- Does AVGO or MSFT pay a bigger dividend?
- AVGO yields 0.65% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is AVGO or MSFT more profitable?
- MSFT runs the higher net margin — AVGO at 38.85% versus MSFT at 39.34%.
- Which has been the better investment, AVGO or MSFT?
- Over the past 10-year, AVGO delivered the higher annualized total return — AVGO at 40.78% versus MSFT at 23.98%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Broadcom P/E ratioMicrosoft P/E ratioBroadcom dividend yieldMicrosoft dividend yieldBroadcom ROEMicrosoft ROEBroadcom operating marginMicrosoft operating marginBroadcom revenue growthMicrosoft revenue growthBroadcom free cash flowMicrosoft free cash flow
Broadcom & Microsoft appear in these rankings
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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 13, 2026.