ASML vs Broadcom Which Is More Lucrative?

ASML and Broadcom are both prominent companies in the technology sector, with ASML specializing in semiconductor manufacturing equipment and Broadcom focused on designing and producing semiconductor products for various industries. Both companies have experienced significant growth in recent years, with their stocks attracting the attention of investors worldwide. ASML's cutting-edge technology and strong market positioning have contributed to its success, while Broadcom's diversified product offerings and strategic acquisitions have bolstered its financial performance. Investors continue to closely monitor the performance of both stocks to make informed investment decisions.

ASML or Broadcom?

When comparing ASML and Broadcom, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ASML and Broadcom.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ASML has a dividend yield of 1.17%, while Broadcom has a dividend yield of 1.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%. On the other hand, Broadcom reports a 5-year dividend growth of -13.53% year and a payout ratio of 181.24%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ASML P/E ratio at 35.46 and Broadcom's P/E ratio at 150.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASML P/B ratio is 15.21 while Broadcom's P/B ratio is 11.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASML has seen a 5-year revenue growth of 1.71%, while Broadcom's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and Broadcom's ROE at 8.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $657.51 for ASML and $163.44 for Broadcom. Over the past year, ASML's prices ranged from $654.77 to $1110.09, with a yearly change of 69.54%. Broadcom's prices fluctuated between $90.31 and $186.42, with a yearly change of 106.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.