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APLD vs AVGO

APLD
Applied Digital Corporation
BEARISH
Price
$27.05
Market Cap
$7.56B
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
APLD
--
AVGO
60.22
Forward P/E
APLD
-30.22
AVGO
17.35
P/B Ratio
APLD
5.21
AVGO
5.23
P/S Ratio
APLD
28.65
AVGO
21.49
EV/EBITDA
APLD
414.75
AVGO
4.21

Profitability

Gross Margin
APLD
19.61%
AVGO
76.73%
Operating Margin
APLD
-24.45%
AVGO
31.77%
Profit Margin
APLD
-47.35%
AVGO
36.57%
ROE
APLD
-7.9%
AVGO
33.37%
ROA
APLD
-1.49%
AVGO
10.66%

Growth

Revenue Growth
APLD
250.1%
AVGO
16.4%
Earnings Growth
APLD
--
AVGO
188.1%

Financial Health

Debt/Equity
APLD
1.26
AVGO
1.66
Current Ratio
APLD
4.82
AVGO
1.9
Quick Ratio
APLD
3.43
AVGO
1.67

Dividends

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

AI Verdict

APLD BEARISH

APLD's deterministic health scores signal severe financial distress: the Piotroski F-Score of 1/9 indicates extreme weakness in operational and financial health, while the absence of an Altman Z-Score raises red flags for potential bankruptcy risk. Despite a remarkable 250% YoY revenue growth and strong earnings surprises in recent quarters, the company operates at a deep loss with a -47.35% profit margin and negative ROE, undermining long-term sustainability. Insider selling totaling $18.85M over six months, including large sales by the CEO and directors, contradicts the 'strong_buy' analyst consensus and suggests internal skepticism. The stock trades at a premium valuation (Price/Sales: 28.65, Price/Book: 5.21) with no intrinsic value or Graham Number available, reflecting speculative pricing rather than fundamental strength.

Strengths
Exceptional 250.10% YoY revenue growth indicates strong market traction and expansion
Recent quarters have consistently beaten earnings estimates with average surprise of 69.94%
High insider selling volume may reflect strategic liquidity events rather than panic
Risks
Piotroski F-Score of 1/9 indicates severe financial deterioration and operational weakness
Negative profit margin (-47.35%) and ROE (-7.90%) signal unsustainable business model
Insider selling of $18.85M in 6 months, including CEO and directors, is a major bearish signal
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

APLD vs AVGO: Head-to-Head Comparison

This page compares Applied Digital Corporation (APLD) 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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