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AVGO vs BELFB

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
BELFB
Bel Fuse Inc.
NEUTRAL
Price
$196.50
Market Cap
$2.49B
Sector
Technology
AI Confidence
72%

Valuation

P/E Ratio
AVGO
68.48
BELFB
40.52
Forward P/E
AVGO
19.65
BELFB
27.12
P/B Ratio
AVGO
20.79
BELFB
5.82
P/S Ratio
AVGO
24.35
BELFB
3.83
EV/EBITDA
AVGO
46.0
BELFB
21.07

Profitability

Gross Margin
AVGO
76.73%
BELFB
38.69%
Operating Margin
AVGO
44.94%
BELFB
17.09%
Profit Margin
AVGO
36.57%
BELFB
10.04%
ROE
AVGO
33.37%
BELFB
16.91%
ROA
AVGO
10.66%
BELFB
8.57%

Growth

Revenue Growth
AVGO
29.5%
BELFB
44.8%
Earnings Growth
AVGO
31.6%
BELFB
172.9%

Financial Health

Debt/Equity
AVGO
0.83
BELFB
0.49
Current Ratio
AVGO
1.9
BELFB
3.06
Quick Ratio
AVGO
1.67
BELFB
1.52

Dividends

Dividend Yield
AVGO
0.74%
BELFB
0.14%
Payout Ratio
AVGO
47.17%
BELFB
5.67%

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)
BELFB NEUTRAL

BELFB exhibits weak fundamental health with a Piotroski F-Score of 3/9, indicating significant financial fragility. Despite strong recent earnings and revenue growth—YoY earnings up 172.9% and revenue up 44.8%—the stock trades at a premium valuation (P/E 40.52 vs. sector avg 93.05) with limited margin of safety relative to the Graham Number of $60.72. Robust profitability metrics like 17.09% operating margin and 16.91% ROE are offset by bearish insider activity and deteriorating technical trends (10/100). While analyst consensus is strong_buy, conflicting signals across valuation, health, and insider behavior warrant caution.

Strengths
Exceptional year-over-year earnings growth of 172.90% with consistent earnings surprises averaging over 20% in recent quarters
Strong profitability: 17.09% operating margin and 16.91% ROE outperform sector averages where average ROE is negative
Healthy liquidity position with current ratio of 3.06 and quick ratio of 1.52, indicating solid short-term financial stability
Risks
Very low Piotroski F-Score of 3/9 signals weak financial health, particularly concerning given high valuation
Absence of Altman Z-Score prevents full distress risk assessment, but low Piotroski score raises red flags
Current price of $196.50 is significantly above Graham Number of $60.72, indicating substantial overvaluation on a defensive basis

Compare Another Pair

AVGO vs BELFB: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Bel Fuse Inc. (BELFB) 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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