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AVGO vs AVT

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
AVT
Avnet, Inc.
NEUTRAL
Price
$50.83
Market Cap
$4.13B
Sector
Technology
AI Confidence
65%

Valuation

P/E Ratio
AVGO
68.48
AVT
18.97
Forward P/E
AVGO
19.65
AVT
8.19
P/B Ratio
AVGO
20.79
AVT
0.85
P/S Ratio
AVGO
24.35
AVT
0.18
EV/EBITDA
AVGO
46.0
AVT
10.47

Profitability

Gross Margin
AVGO
76.73%
AVT
10.63%
Operating Margin
AVGO
44.94%
AVT
2.58%
Profit Margin
AVGO
36.57%
AVT
1.04%
ROE
AVGO
33.37%
AVT
4.71%
ROA
AVGO
10.66%
AVT
3.07%

Growth

Revenue Growth
AVGO
29.5%
AVT
5.3%
Earnings Growth
AVGO
31.6%
AVT
-7.6%

Financial Health

Debt/Equity
AVGO
0.83
AVT
0.66
Current Ratio
AVGO
1.9
AVT
2.36
Quick Ratio
AVGO
1.67
AVT
1.07

Dividends

Dividend Yield
AVGO
0.74%
AVT
2.73%
Payout Ratio
AVGO
47.17%
AVT
49.63%

AI Verdict

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)
AVT NEUTRAL

AVT's deterministic health score is concerning with a Piotroski F-Score of 4/9, indicating marginal financial health. The Graham Number suggests a defensive fair value of $59.95, implying the current price of $50.83 is slightly undervalued, though growth-based intrinsic value is much lower at $18.76. Profitability metrics are weak, with low margins and declining earnings, but the balance sheet shows strength via a solid current ratio and moderate leverage. Despite mixed signals, the stock appears fairly valued with moderate risks and limited near-term catalysts.

Strengths
Current price ($50.83) is below Graham Number ($59.95), suggesting potential defensive undervaluation
Strong liquidity position with a current ratio of 2.36 and quick ratio of 1.07
Moderate debt/equity of 0.66, below sector average of 0.61, indicating conservative capital structure
Risks
Low Piotroski F-Score of 4/9 signals weak financial health, particularly in profitability and leverage trends
Earnings under pressure with YoY EPS growth at -8.7% and operating margin just 2.58%
Profit margin of only 1.04% is extremely thin, leaving little room for margin of safety

Compare Another Pair

AVGO vs AVT: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Avnet, Inc. (AVT) 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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