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AVGO vs BR

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
BR
Broadridge Financial Solutions, Inc.
NEUTRAL
Price
$207.54
Market Cap
$24.23B
Sector
Technology
AI Confidence
72%

Valuation

P/E Ratio
AVGO
68.48
BR
26.81
Forward P/E
AVGO
19.65
BR
20.21
P/B Ratio
AVGO
20.79
BR
9.19
P/S Ratio
AVGO
24.35
BR
3.43
EV/EBITDA
AVGO
46.0
BR
15.72

Profitability

Gross Margin
AVGO
76.73%
BR
31.34%
Operating Margin
AVGO
44.94%
BR
11.87%
Profit Margin
AVGO
36.57%
BR
13.11%
ROE
AVGO
33.37%
BR
38.21%
ROA
AVGO
10.66%
BR
9.52%

Growth

Revenue Growth
AVGO
29.5%
BR
11.7%
Earnings Growth
AVGO
31.6%
BR
105.9%

Financial Health

Debt/Equity
AVGO
0.83
BR
1.32
Current Ratio
AVGO
1.9
BR
0.93
Quick Ratio
AVGO
1.67
BR
0.8

Dividends

Dividend Yield
AVGO
0.74%
BR
1.86%
Payout Ratio
AVGO
47.17%
BR
46.23%

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)
BR NEUTRAL

Broadridge Financial Solutions has a stable Piotroski F-Score of 6/9, indicating moderate financial health, but lacks an Altman Z-Score, limiting bankruptcy risk assessment. The company shows strong profitability with a 38.21% ROE and solid revenue growth of 11.70%, though recent Q/Q EPS growth is sharply negative. Valuation metrics suggest a premium pricing relative to earnings and book value, while insider selling and bearish technical trends weigh on sentiment. Analysts maintain a 'buy' recommendation with a high target price of $267.88, implying significant upside, but near-term price performance has been weak.

Strengths
Strong ROE of 38.21% indicates efficient use of shareholder equity
Revenue growth of 11.70% YoY outpaces sector average of 62.24% but remains positive in a mature tech subsector
Consistent earnings beat history: 3 out of last 4 quarters exceeded estimates with an average surprise of 7.96%
Risks
Current ratio of 0.93 and quick ratio of 0.80 indicate potential short-term liquidity pressure
Debt/Equity of 1.32 is elevated compared to sector average of 0.69, increasing financial risk
Most recent Q/Q EPS growth of -57.5% signals a sharp earnings deceleration

Compare Another Pair

AVGO vs BR: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Broadridge Financial Solutions, Inc. (BR) 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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