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ARW vs AVGO

ARW
Arrow Electronics, Inc.
NEUTRAL
Price
$116.66
Market Cap
$6.01B
Sector
Technology
AI Confidence
65%
AVGO
Broadcom Inc.
NEUTRAL
Price
$309.51
Market Cap
$1.47T
Sector
Technology
AI Confidence
60%

Valuation

P/E Ratio
ARW
13.08
AVGO
60.22
Forward P/E
ARW
9.87
AVGO
17.35
P/B Ratio
ARW
0.94
AVGO
5.23
P/S Ratio
ARW
0.2
AVGO
21.49
EV/EBITDA
ARW
8.94
AVGO
4.21

Profitability

Gross Margin
ARW
11.3%
AVGO
76.73%
Operating Margin
ARW
2.75%
AVGO
31.77%
Profit Margin
ARW
1.62%
AVGO
36.57%
ROE
ARW
7.61%
AVGO
33.37%
ROA
ARW
2.38%
AVGO
10.66%

Growth

Revenue Growth
ARW
13.0%
AVGO
16.4%
Earnings Growth
ARW
11.2%
AVGO
188.1%

Financial Health

Debt/Equity
ARW
0.48
AVGO
1.66
Current Ratio
ARW
1.46
AVGO
1.9
Quick Ratio
ARW
1.1
AVGO
1.67

Dividends

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

AI Verdict

ARW NEUTRAL

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of just 3/9, indicating significant concerns in profitability, leverage, and operating efficiency. Despite this, the company shows resilience through solid revenue growth (13% YoY), consistent earnings beats (25.62% average surprise over last 4 quarters), and a reasonable Debt/Equity ratio of 0.48. Valuation appears attractive relative to peers with a P/E of 13.08 versus sector average of 89.76 and a Price/Book under 1, though low margins and declining recent EPS growth (-0.8% QoQ) temper optimism. The stock trades below its Graham Number ($157.92) and intrinsic value estimate ($212.3), suggesting potential undervaluation, but weak profitability metrics and lack of Altman Z-Score data limit confidence in financial stability.

Strengths
Revenue growth of 13% YoY outpaces most peers in a high-growth sector
Consistently beats earnings estimates, with an average surprise of 25.62% over the last four quarters
Attractive valuation metrics: P/E of 13.08 and Price/Sales of 0.20 well below sector averages
Risks
Very low Piotroski F-Score of 3/9 signals weak financial health across profitability, leverage, and operational efficiency
Profit margin of only 1.62% and ROE of 7.61% are weak for reinvestment and competitive advantage
Missing Altman Z-Score prevents definitive assessment of bankruptcy risk, a critical data gap
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

ARW vs AVGO: Head-to-Head Comparison

This page compares Arrow Electronics, Inc. (ARW) 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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