Broadcom Inc. (AVGO) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Broadcom Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
AVGO
Broadcom Inc.
$380.91TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — AVGO vs MSFT
growth of $100 · dividends reinvested · last 17yAVGO +33132.1%MSFT +2116.3%AVGO compounded faster
Log scale — wide-divergence pair
AVGO MSFT
AVGO vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $1.81T market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 63.87 P/E), one valuation lens rather than an overall verdict.
- •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 0.66%).
Metrics side by side
Valuation
| Metric | AVGO | MSFT |
|---|---|---|
| P/E ratio | 63.87 | 23.16 |
| Forward P/E | 33.06 | 22.87 |
| P/S ratio | 24.76 | 9.10 |
| P/B ratio | 21.31 | 6.99 |
| PEG ratio | 0.26 | 2.34 |
| EV / EBITDA | 45.90 | 15.53 |
| FCF yield | 1.75% | 2.52% |
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 | 0.66% | 0.91% |
| Payout ratio | 51.73% | 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) | 54.69% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, AVGO or MSFT?
- MSFT has the lower trailing P/E: AVGO trades at 63.87 and MSFT at 23.16. P/E is one valuation measure and does not by itself establish which business is cheaper.
- 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 0.66% 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%.
- How have AVGO and MSFT total returns compared?
- Over the past 10 years, AVGO delivered 40.40% and MSFT delivered 22.86% annualized total return. 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 July 28, 2026.