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AVGO vs BL

AVGO
Broadcom Inc.
NEUTRAL
Price
$309.51
Market Cap
$1.47T
Sector
Technology
AI Confidence
60%
BL
BlackLine, Inc.
BEARISH
Price
$53.08
Market Cap
$3.29B
Sector
Technology
AI Confidence
72%

Valuation

P/E Ratio
AVGO
60.22
BL
48.25
Forward P/E
AVGO
17.35
BL
22.55
P/B Ratio
AVGO
5.23
BL
9.69
P/S Ratio
AVGO
21.49
BL
4.78
EV/EBITDA
AVGO
4.21
BL
57.37

Profitability

Gross Margin
AVGO
76.73%
BL
75.34%
Operating Margin
AVGO
31.77%
BL
5.54%
Profit Margin
AVGO
36.57%
BL
11.07%
ROE
AVGO
33.37%
BL
22.18%
ROA
AVGO
10.66%
BL
1.23%

Growth

Revenue Growth
AVGO
16.4%
BL
7.5%
Earnings Growth
AVGO
188.1%
BL
-67.9%

Financial Health

Debt/Equity
AVGO
1.66
BL
2.51
Current Ratio
AVGO
1.9
BL
1.52
Quick Ratio
AVGO
1.67
BL
1.48

Dividends

Dividend Yield
AVGO
0.84%
BL
--
Payout Ratio
AVGO
47.17%
BL
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.
BL BEARISH

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and the absence of an Altman Z-Score prevents a full distress risk assessment. Despite strong gross margins and a history of consistent earnings surprises, the company faces significant headwinds including negative earnings growth, high leverage, and deteriorating profitability. Valuation metrics are stretched relative to fundamentals, with a P/E of 48.25 and a Graham Number of just $11.64, implying the stock is trading at a substantial premium. Persistent insider selling and weak technical sentiment further reinforce caution.

Strengths
Consistently beats earnings estimates, with 3 out of the last 4 quarters exceeding expectations and an average surprise of 16.22%
High gross margin of 75.34%, reflecting strong pricing power and low cost of sales in its software business model
Solid return on equity (ROE) of 22.18%, indicating efficient use of shareholder capital
Risks
Piotroski F-Score of only 4/9 signals weak financial health, particularly concerning given declining profitability and earnings
Earnings growth is sharply negative at -67.90% YoY and -69.30% QoQ, raising sustainability concerns
High debt/equity ratio of 2.51, significantly above sector average of 0.58, increasing financial risk

Compare Another Pair

AVGO vs BL: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and BlackLine, Inc. (BL) 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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