Broadcom vs CrowdStrike Which Is Stronger?

Broadcom and CrowdStrike are two companies with widely different specialties. Broadcom is a global technology company that specializes in semiconductors and infrastructure software, while CrowdStrike is a leading provider of cloud-delivered endpoint protection. Both companies have seen significant growth in their stock prices in recent years, but investors may need to consider their unique market positions and growth potential before making investment decisions. This comparison will explore the strengths and weaknesses of both stocks to help investors make informed choices.

Broadcom or CrowdStrike?

When comparing Broadcom and CrowdStrike, 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 Broadcom and CrowdStrike.

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. Broadcom has a dividend yield of 0.94%, while CrowdStrike has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Broadcom reports a 5-year dividend growth of 10.81% year and a payout ratio of 166.48%. On the other hand, CrowdStrike reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Broadcom P/E ratio at 178.43 and CrowdStrike's P/E ratio at 713.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Broadcom P/B ratio is 15.54 while CrowdStrike's P/B ratio is 29.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Broadcom has seen a 5-year revenue growth of 0.73%, while CrowdStrike's is 12.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Broadcom's ROE at 8.62% and CrowdStrike's ROE at 4.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $211.11 for Broadcom and $361.52 for CrowdStrike. Over the past year, Broadcom's prices ranged from $104.15 to $228.70, with a yearly change of 119.59%. CrowdStrike's prices fluctuated between $200.81 and $398.33, with a yearly change of 98.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.