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AVGO vs BLKB

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
BLKB
Blackbaud, Inc.
BEARISH
Price
$56.34
Market Cap
$2.73B
Sector
Technology
AI Confidence
78%

Valuation

P/E Ratio
AVGO
68.48
BLKB
--
Forward P/E
AVGO
19.65
BLKB
11.57
P/B Ratio
AVGO
20.79
BLKB
24.6
P/S Ratio
AVGO
24.35
BLKB
2.41
EV/EBITDA
AVGO
46.0
BLKB
12.37

Profitability

Gross Margin
AVGO
76.73%
BLKB
58.24%
Operating Margin
AVGO
44.94%
BLKB
19.62%
Profit Margin
AVGO
36.57%
BLKB
-22.16%
ROE
AVGO
33.37%
BLKB
-77.16%
ROA
AVGO
10.66%
BLKB
6.68%

Growth

Revenue Growth
AVGO
29.5%
BLKB
-1.9%
Earnings Growth
AVGO
31.6%
BLKB
180.0%

Financial Health

Debt/Equity
AVGO
0.83
BLKB
9.93
Current Ratio
AVGO
1.9
BLKB
0.69
Quick Ratio
AVGO
1.67
BLKB
0.13

Dividends

Dividend Yield
AVGO
0.74%
BLKB
--
Payout Ratio
AVGO
47.17%
BLKB
0.0%

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)
BLKB BEARISH

The deterministic health scores paint a concerning picture, with a Piotroski F-Score of 4/9 indicating marginal financial stability and no Altman Z-Score available to confirm safety from distress. Despite strong operating margins and recent earnings beats, the company is unprofitable overall (negative net margin and ROE), carries an extremely high debt/equity ratio of 9.93, and shows weak liquidity. Valuation multiples like a Price/Book of 24.60 appear stretched against poor profitability, while insider selling and declining revenue further undermine confidence. The stock trades below analyst targets but faces significant structural and financial headwinds.

Strengths
Strong operating margin of 19.62% indicates pricing power or cost control at the operational level
High gross margin of 58.24% reflects scalable software business model
Recent quarterly earnings have consistently beaten estimates, with 3 out of last 4 quarters above expectations
Risks
Piotroski F-Score of 4/9 indicates weak financial health, particularly in profitability and leverage
Extremely high Debt/Equity ratio of 9.93 raises serious concerns about solvency and financial flexibility
Negative profit margin (-22.16%) and ROE (-77.16%) show the company is not converting equity into profits

Compare Another Pair

AVGO vs BLKB: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Blackbaud, Inc. (BLKB) 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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