ATI vs Broadcom Which Is More Profitable?

ATI Technologies Inc. and Broadcom Corporation are two leading companies in the technology sector. Both companies specialize in the design and manufacturing of semiconductor products for various industries such as telecommunications, networking, and consumer electronics. Investors often compare the performance of ATI and Broadcom stocks to make informed decisions about their investment portfolios. By analyzing the financial health, market positioning, and growth prospects of these companies, investors can determine which stock may offer better returns in the long term.

ATI or Broadcom?

When comparing ATI 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 ATI 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. ATI has a dividend yield of -%, while Broadcom has a dividend yield of 1.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATI reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.25%. 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 ATI P/E ratio at 19.21 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. ATI P/B ratio is 4.04 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, ATI has seen a 5-year revenue growth of 0.17%, while Broadcom's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATI's ROE at 26.03% and Broadcom's ROE at 8.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $55.76 for ATI and $163.44 for Broadcom. Over the past year, ATI's prices ranged from $38.04 to $68.92, with a yearly change of 81.18%. 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.