VIA vs Broadcom Which Is a Better Investment?

VIA and Broadcom are two prominent companies in the technology sector, each holding a significant position in the market. VIA, a Taiwanese company known for its semiconductor solutions, has seen steady growth in recent years. On the other hand, Broadcom, an American multinational corporation specializing in semiconductor and infrastructure software products, has a strong presence in the industry. Both companies have experienced fluctuations in their stock prices, making them intriguing options for investors seeking opportunities in the technology sector.

VIA or Broadcom?

When comparing VIA 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 VIA 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. VIA 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. VIA reports a 5-year dividend growth of 0.00% year and a payout ratio of 76.19%. 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 VIA P/E ratio at 16.70 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. VIA P/B ratio is 5.13 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, VIA has seen a 5-year revenue growth of -0.52%, while Broadcom's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with VIA's ROE at 32.17% and Broadcom's ROE at 8.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥127.00 for VIA and $163.44 for Broadcom. Over the past year, VIA's prices ranged from ¥99.00 to ¥255.00, with a yearly change of 157.58%. 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.