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AMAT vs AVGO

AMAT
Applied Materials, Inc.
NEUTRAL
Price
$341.79
Market Cap
$271.25B
Sector
Technology
AI Confidence
80%
AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AMAT
35.02
AVGO
68.48
Forward P/E
AMAT
24.69
AVGO
19.65
P/B Ratio
AMAT
12.49
AVGO
20.79
P/S Ratio
AMAT
9.61
AVGO
24.35
EV/EBITDA
AMAT
30.37
AVGO
46.0

Profitability

Gross Margin
AMAT
48.72%
AVGO
76.73%
Operating Margin
AMAT
29.89%
AVGO
44.94%
Profit Margin
AMAT
27.78%
AVGO
36.57%
ROE
AMAT
38.86%
AVGO
33.37%
ROA
AMAT
14.85%
AVGO
10.66%

Growth

Revenue Growth
AMAT
-2.1%
AVGO
29.5%
Earnings Growth
AMAT
75.2%
AVGO
31.6%

Financial Health

Debt/Equity
AMAT
0.33
AVGO
0.83
Current Ratio
AMAT
2.71
AVGO
1.9
Quick Ratio
AMAT
1.74
AVGO
1.67

Dividends

Dividend Yield
AMAT
0.66%
AVGO
0.74%
Payout Ratio
AMAT
18.26%
AVGO
47.17%

AI Verdict

AMAT NEUTRAL

AMAT shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 9/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (27.8% margin)
Strong financial trend (Piotroski F-Score: 9/9)
Low debt with D/E ratio of 0.33
Risks
High valuation with P/E of 35.0
Premium vs Graham Number ($77.52)
Declining revenue (-2.1%)
AVGO NEUTRAL

Broadcom exhibits a dichotomy between elite operational performance and poor deterministic value metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a massive premium to its Graham Number ($44.08) and Intrinsic Value ($151.04). This valuation gap is partially justified by a very attractive PEG ratio (0.68) and strong forward P/E (19.65), suggesting high growth expectations. However, aggressive insider selling by the CEO and CFO, combined with a bearish technical trend, offsets the strong analyst 'strong_buy' consensus.

Strengths
Exceptional profitability with 76.73% gross margins and 44.94% operating margins
Strong growth trajectory with ~30% YoY increases in both revenue and earnings
Impressive earnings track record with consistent beats over 25 quarters
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Strong bearish insider sentiment with 14 sell transactions and 0 buys
Technical trend is currently 0/100 (Bearish)

Compare Another Pair

AMAT vs AVGO: Head-to-Head Comparison

This page compares Applied Materials, Inc. (AMAT) 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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