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AVGO vs BAND

AVGO
Broadcom Inc.
NEUTRAL
Price
$309.51
Market Cap
$1.47T
Sector
Technology
AI Confidence
60%
BAND
Bandwidth Inc.
BEARISH
Price
$14.49
Market Cap
$442.3M
Sector
Technology
AI Confidence
78%

Valuation

P/E Ratio
AVGO
60.22
BAND
--
Forward P/E
AVGO
17.35
BAND
6.76
P/B Ratio
AVGO
5.23
BAND
1.13
P/S Ratio
AVGO
21.49
BAND
0.58
EV/EBITDA
AVGO
4.21
BAND
25.98

Profitability

Gross Margin
AVGO
76.73%
BAND
38.81%
Operating Margin
AVGO
31.77%
BAND
-1.05%
Profit Margin
AVGO
36.57%
BAND
-1.54%
ROE
AVGO
33.37%
BAND
-3.2%
ROA
AVGO
10.66%
BAND
-0.8%

Growth

Revenue Growth
AVGO
16.4%
BAND
-1.0%
Earnings Growth
AVGO
188.1%
BAND
--

Financial Health

Debt/Equity
AVGO
1.66
BAND
1.22
Current Ratio
AVGO
1.9
BAND
1.39
Quick Ratio
AVGO
1.67
BAND
1.25

Dividends

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

AI Verdict

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.
BAND BEARISH

The company exhibits weak financial health with a Piotroski F-Score of just 2/9, indicating significant operational and balance sheet concerns. Despite a low forward P/E of 6.76 and a bullish analyst recommendation, the firm is unprofitable with negative ROE and ROA, declining revenue, and a high debt/equity ratio of 1.22. Insider selling worth $0.90M in the last six months reinforces caution, while the stock’s poor 5-year performance (-91.3%) reflects sustained investor skepticism. Although gross margins are healthy at 38.81%, overall financial instability and deteriorating earnings outweigh these positives.

Strengths
Gross margin of 38.81% indicates strong pricing power or cost control at production level
Forward P/E of 6.76 is significantly below sector average (93.05), suggesting potential undervaluation
Price/Sales of 0.58 is low, indicating possible value relative to revenue generation
Risks
Piotroski F-Score of 2/9 signals severe financial weakness in profitability, leverage, and operating efficiency
Negative profit and operating margins (-1.54%, -1.05%) show ongoing unprofitability
Revenue growth is declining YoY (-1.00%), indicating shrinking top line

Compare Another Pair

AVGO vs BAND: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Bandwidth Inc. (BAND) 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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