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ALGM vs AVGO

ALGM
Allegro MicroSystems, Inc.
BEARISH
Price
$31.13
Market Cap
$5.77B
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
ALGM
--
AVGO
60.22
Forward P/E
ALGM
33.05
AVGO
17.35
P/B Ratio
ALGM
5.99
AVGO
5.23
P/S Ratio
ALGM
6.87
AVGO
21.49
EV/EBITDA
ALGM
82.13
AVGO
4.21

Profitability

Gross Margin
ALGM
45.13%
AVGO
76.73%
Operating Margin
ALGM
4.18%
AVGO
31.77%
Profit Margin
ALGM
-1.57%
AVGO
36.57%
ROE
ALGM
-1.36%
AVGO
33.37%
ROA
ALGM
0.28%
AVGO
10.66%

Growth

Revenue Growth
ALGM
28.9%
AVGO
16.4%
Earnings Growth
ALGM
--
AVGO
188.1%

Financial Health

Debt/Equity
ALGM
0.32
AVGO
1.66
Current Ratio
ALGM
3.65
AVGO
1.9
Quick Ratio
ALGM
1.81
AVGO
1.67

Dividends

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

AI Verdict

ALGM BEARISH

ALGM's deterministic health scores signal significant financial distress: the Piotroski F-Score of 2/9 indicates weak operational and financial health, while the absence of an Altman Z-Score raises concerns about bankruptcy risk. Despite strong revenue growth (28.9% YoY) and positive earnings momentum (114.3% YoY EPS growth), the company reports negative profit margins (-1.57%) and ROE (-1.36%), undermining profitability sustainability. Insider selling totaling $1.65M over six months and a bearish technical trend further erode confidence. The stock trades at a premium valuation (Forward P/E: 33.05, Price/Sales: 6.87) relative to its weak fundamentals, suggesting overvaluation.

Strengths
Strong revenue growth of 28.9% YoY indicates market expansion and demand for products
Positive year-over-year EPS growth of 114.3% reflects improving earnings momentum
Healthy gross margin of 45.13% suggests strong pricing power and cost control
Risks
Piotroski F-Score of 2/9 indicates severe financial and operational weaknesses
Negative profit margin (-1.57%) and ROE (-1.36%) suggest poor profitability and capital efficiency
Insider selling of $1.65M in last 6 months signals lack of confidence from leadership
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

ALGM vs AVGO: Head-to-Head Comparison

This page compares Allegro MicroSystems, Inc. (ALGM) 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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