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AUDC vs AVGO

AUDC
AudioCodes Ltd.
NEUTRAL
Price
$8.33
Market Cap
$238.9M
Sector
Technology
AI Confidence
65%
AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AUDC
18.11
AVGO
68.48
Forward P/E
AUDC
12.43
AVGO
19.65
P/B Ratio
AUDC
1.35
AVGO
20.79
P/S Ratio
AUDC
0.98
AVGO
24.35
EV/EBITDA
AUDC
10.65
AVGO
46.0

Profitability

Gross Margin
AUDC
65.12%
AVGO
76.73%
Operating Margin
AUDC
6.6%
AVGO
44.94%
Profit Margin
AUDC
5.66%
AVGO
36.57%
ROE
AUDC
7.67%
AVGO
33.37%
ROA
AUDC
2.74%
AVGO
10.66%

Growth

Revenue Growth
AUDC
2.2%
AVGO
29.5%
Earnings Growth
AUDC
9.4%
AVGO
31.6%

Financial Health

Debt/Equity
AUDC
0.22
AVGO
0.83
Current Ratio
AUDC
2.09
AVGO
1.9
Quick Ratio
AUDC
1.82
AVGO
1.67

Dividends

Dividend Yield
AUDC
4.77%
AVGO
0.74%
Payout Ratio
AUDC
82.61%
AVGO
47.17%

AI Verdict

AUDC NEUTRAL

The company exhibits a weak Piotroski F-Score of 4/9, indicating marginal financial health, and lacks an Altman Z-Score, limiting distress risk assessment. While profitability metrics like gross margin and ROE are relatively solid, growth is sluggish and valuation multiples are mixed. The stock trades above the Graham Number of $7.99 but below the intrinsic value estimate of $9.71, suggesting modest undervaluation. However, weak earnings consistency, declining price trends, and low analyst coverage temper optimism.

Strengths
High gross margin of 65.12% indicates strong pricing power and cost control in core operations
Healthy balance sheet with current ratio of 2.09 and quick ratio of 1.82, signaling solid short-term liquidity
Low debt/equity ratio of 0.22, reflecting conservative capital structure and low leverage risk
Risks
Piotroski F-Score of 4/9 indicates weak profitability, leverage, and operating efficiency trends
Only 1 analyst coverage and no formal recommendation, indicating limited market confidence or visibility
Revenue growth of 2.20% YoY is well below sector average of 82.53%, raising competitive concerns
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

AUDC vs AVGO: Head-to-Head Comparison

This page compares AudioCodes Ltd. (AUDC) 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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