Financial Comparison: Broadcom (NASDAQ:AVGO) & Silvaco Group (NASDAQ:SVCO)

Silvaco Group (NASDAQ:SVCO) and Broadcom (NASDAQ:AVGO) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Silvaco Group and Broadcom”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silvaco Group	$59.68 million	2.55	-$39.40 million	($1.08)	-4.63
Broadcom	$51.57 billion	26.81	$5.90 billion	$2.67	110.11

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

Insider and Institutional Ownership

76.4% of Broadcom shares are owned by institutional investors. 38.4% of Silvaco Group shares are owned by company insiders. Comparatively, 2.0% of Broadcom shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Silvaco Group and Broadcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silvaco Group	-56.53%	-14.47%	-9.44%
Broadcom	22.64%	35.49%	14.58%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Silvaco Group and Broadcom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silvaco Group	0	0	5	0	3.00
Broadcom	0	1	26	3	3.07

Silvaco Group presently has a consensus target price of $14.20, suggesting a potential upside of 184.00%. Broadcom has a consensus target price of $298.6667, suggesting a potential upside of 1.59%. Given Silvaco Group’s higher possible upside, analysts clearly believe Silvaco Group is more favorable than Broadcom.

Volatility and Risk

Silvaco Group has a beta of 3.04, indicating that its share price is 204% more volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Summary

Broadcom beats Silvaco Group on 12 of the 15 factors compared between the two stocks.

About Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.

About Broadcom

Broadcom Inc. designs, develops, and supplies various 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 in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. 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. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.