Broadcom (NASDAQ:AVGO) versus Silvaco Group (NASDAQ:SVCO) Critical Analysis

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadcom	$51.57 billion	27.18	$5.90 billion	$2.67	111.61
Silvaco Group	$59.68 million	2.37	-$39.40 million	($1.08)	-4.31

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.

Volatility & Risk

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Broadcom and Silvaco Group, as provided by MarketBeat.com.

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

Broadcom presently has a consensus price target of $300.96, indicating a potential upside of 0.99%. Silvaco Group has a consensus price target of $14.20, indicating a potential upside of 205.38%. Given Silvaco Group’s higher possible upside, analysts clearly believe Silvaco Group is more favorable than Broadcom.

Insider & Institutional Ownership

76.4% of Broadcom shares are held by institutional investors. 2.0% of Broadcom shares are held by company insiders. Comparatively, 38.4% of Silvaco Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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

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.

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.