AVGO vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Broadcom Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Broadcom Inc. · Technology
$354.99
+15.1% upside to fair value
Med Conviction
Grade B
High Quality
VS
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AVGO |
MSFT |
| Current Price |
$354.99 |
$497.12 |
| Fair Value Estimate |
$408.70 |
$702.35 |
| Upside to Fair Value |
+15.1%
|
+41.3%
|
| Market Cap |
$1,688.9B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.0x
|
18.3x
|
| Price / Sales |
18.9x
|
11.1x
|
| Price / FCF |
42.9x
|
55.1x
|
| Revenue Growth YoY |
+85.5%
|
+17.7%
|
| Gross Margin |
67.7%
|
67.9%
|
| Operating Margin |
48.3%
|
46.8%
|
| Return on Equity |
43.9%
|
33.2%
|
| Dividend Yield |
0.73% |
0.73% |
| FCF Yield |
2.33%
|
1.81%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Broadcom is a diversified semiconductor and infrastructure software company led by CEO Hock Tan, with a portfolio spanning custom AI ASICs, networking, wireless, storage, and enterprise software. The business quality is high: TTM gross margin of 67.7%, TTM operating margin of 48.3%, TTM net margin of 42.9%, and ROE of 43.9% demonstrate exceptional profitability, while revenue growth of 85.5% and …
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Accumulation Zones
| Metric |
AVGO |
MSFT |
| Zone Low |
$306.52 |
$526.76 |
| Zone High |
$347.39 |
$597.00 |
| In Buy Zone? |
No
|
Yes
|