No connection

Search Results

AVGO vs CIEN

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
CIEN
Ciena Corporation
BEARISH
Price
$520.80
Market Cap
$73.64B
Sector
Technology
AI Confidence
95%

Valuation

P/E Ratio
AVGO
68.48
CIEN
333.85
Forward P/E
AVGO
19.65
CIEN
61.63
P/B Ratio
AVGO
20.79
CIEN
26.38
P/S Ratio
AVGO
24.35
CIEN
14.37
EV/EBITDA
AVGO
46.0
CIEN
129.59

Profitability

Gross Margin
AVGO
76.73%
CIEN
42.12%
Operating Margin
AVGO
44.94%
CIEN
13.4%
Profit Margin
AVGO
36.57%
CIEN
4.47%
ROE
AVGO
33.37%
CIEN
8.2%
ROA
AVGO
10.66%
CIEN
4.58%

Growth

Revenue Growth
AVGO
29.5%
CIEN
33.1%
Earnings Growth
AVGO
31.6%
CIEN
232.3%

Financial Health

Debt/Equity
AVGO
0.83
CIEN
0.57
Current Ratio
AVGO
1.9
CIEN
2.81
Quick Ratio
AVGO
1.67
CIEN
1.92

Dividends

Dividend Yield
AVGO
0.74%
CIEN
--
Payout Ratio
AVGO
47.17%
CIEN
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)
CIEN BEARISH

Ciena Corporation exhibits a stable financial health profile with a Piotroski F-Score of 4/9, but is currently experiencing a severe valuation decoupling. The current price of $520.80 is astronomically higher than both the Graham Number ($26.32) and the growth-based Intrinsic Value ($46.02). While the company shows explosive earnings growth and strong liquidity, the P/E ratio of 333.85 and a bearish technical trend (10/100) suggest the stock is in a speculative bubble. Furthermore, the current price sits significantly above the analyst target mean of $378.11, indicating substantial downside risk.

Strengths
Explosive YoY earnings growth of 232.30%
Strong liquidity position with a Current Ratio of 2.81
Robust revenue growth of 33.10% YoY
Risks
Extreme overvaluation with a P/E ratio of 333.85
Massive discrepancy between market price ($520.80) and intrinsic value ($46.02)
Bearish insider sentiment with 12 sell transactions and 0 buys

Compare Another Pair

AVGO vs CIEN: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Ciena Corporation (CIEN) 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.

Home
Terminal
AI Chat
Markets
Profile