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AAOI vs AVGO

AAOI
Applied Optoelectronics, Inc.
BEARISH
Price
$96.81
Market Cap
$7.28B
Sector
Technology
AI Confidence
85%
AVGO
Broadcom Inc.
NEUTRAL
Price
$309.51
Market Cap
$1.47T
Sector
Technology
AI Confidence
60%

Valuation

P/E Ratio
AAOI
--
AVGO
60.22
Forward P/E
AAOI
30.28
AVGO
17.35
P/B Ratio
AAOI
9.89
AVGO
5.23
P/S Ratio
AAOI
15.97
AVGO
21.49
EV/EBITDA
AAOI
-272.13
AVGO
4.21

Profitability

Gross Margin
AAOI
30.04%
AVGO
76.73%
Operating Margin
AAOI
-8.57%
AVGO
31.77%
Profit Margin
AAOI
-8.39%
AVGO
36.57%
ROE
AAOI
-7.94%
AVGO
33.37%
ROA
AAOI
-3.98%
AVGO
10.66%

Growth

Revenue Growth
AAOI
33.9%
AVGO
16.4%
Earnings Growth
AAOI
--
AVGO
188.1%

Financial Health

Debt/Equity
AAOI
0.34
AVGO
1.66
Current Ratio
AAOI
2.63
AVGO
1.9
Quick Ratio
AAOI
1.75
AVGO
1.67

Dividends

Dividend Yield
AAOI
--
AVGO
0.84%
Payout Ratio
AAOI
0.0%
AVGO
47.17%

AI Verdict

AAOI BEARISH

AAOI's deterministic health scores are severely compromised: the Piotroski F-Score of 0/9 signals extreme financial distress, with no positive indicators in profitability, leverage, or cash flow. The Altman Z-Score is unavailable, but the company's negative ROE (-7.94%), negative profit margins (-8.39%), and persistent losses despite 33.9% revenue growth indicate deep operational inefficiency. While the stock has delivered extraordinary price appreciation (510% in 1Y), this is not supported by fundamentals, and the valuation (P/E 30.28, Price/Sales 15.97) reflects a premium driven by speculative momentum rather than intrinsic value. Insider selling of $23.77M in the last 6 months further undermines confidence, signaling potential misalignment with public investors.

Strengths
Strong revenue growth of 33.9% YoY, indicating market demand and expansion in core business
High gross margin of 30.04% suggests pricing power and efficient production processes
Solid liquidity with current ratio of 2.63 and quick ratio of 1.75, indicating short-term financial resilience
Risks
Piotroski F-Score of 0/9 indicates severe financial distress, with no positive signals across profitability, leverage, or cash flow
Negative ROE (-7.94%), ROA (-3.98%), and operating margin (-8.57%) reflect persistent unprofitability despite revenue growth
Insider selling of $23.77M in 6 months with no buys signals potential insider pessimism and lack of confidence
AVGO NEUTRAL

AVGO shows bullish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Key strengths include strong valuation and growth metrics. Price trades at a 104.1% premium to fair value estimate ($151.63), limiting near-term upside from a valuation perspective.

Strengths
Strong profitability (36.6% margin)
Strong revenue growth of 16.4%
Strong ROE of 33.4%
Risks
High valuation with P/E of 60.2
Premium vs Graham Number ($82.76)
Price trades at a 104.1% premium to fair value estimate ($151.63), limiting near-term upside from a valuation perspective.

Compare Another Pair

AAOI vs AVGO: Head-to-Head Comparison

This page compares Applied Optoelectronics, Inc. (AAOI) and Broadcom Inc. (AVGO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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